Loans for the unemployed.
HUD loans for the unemployed homeowners are looked upon with positive responses. Hopefully, the program will succeed in its efforts.
The Housing and Urban Development (HUD) department of has announced a loan program for the troubled homeowners who have lost their jobs or are facing underemployment and are now standing head to head with foreclosure. The HUD loan program is a $1 billion initiative and will be available for Puerto Rico and 32 other states. A detailed HUD release states:
“The program will offer a declining balance,
deferred payment "bridge loan" (non-recourse, subordinate loan with zero interest) for up to $50,000 to assist eligible homeowners with payments of arrearages, including delinquent taxes and insurance plus up to 24 months of monthly payments on their mortgage principal, interest, mortgage insurance premiums, taxes and hazard insurance.”
The HUD is offering a loan of $50,000 to the unemployed homeowners. Wisconsin, which did not receive any federal aid from any of the previous federal funding initiative, has announced that it will be receiving $51 million through this program. However, there are certain criteria that the consumers need to fulfill in order to be eligible for the loans:
- Homeowners must be behind their payments by at least 3 months and must have suffered at least 15% fall in income. The homeowners have been able to afford their mortgage payments before the fall in income.
The states which are not receiving this HUD aid have actually been helped by another program called Hardest Hit Fund, which allocated $4 billion for people who are troubled with unemployment or underemployment and are facing the problem of foreclosure.
The HUD program is just a supplementary aiding program of a larger initiative which was taken earlier this year under which the Fed allocated $7.6 billion that was spread across 18 states. It is very clear that the foreclosure crisis has created enormous troubles and with more and more homes adorning the crown of foreclosed inventories piled up, the economy will take considerable time to recover.
However, if you are looking to buy a home, the foreclosed properties must be your first choice due to the huge discounts available. Visit ForeclosureDataBank.com to get the latest foreclosure news and the most accurate foreclosure listings available online.
