If you live in Minnesota, have taken a hit on your income and are facing foreclosure, then a new federal program could provide you with $50,000 in interest-free, forgivable loans to help you make it through[1]. Eligible Minnesotans can start applying today for monies from the Emergency Homeowners Loan Program (EHLP) to save their homes. In order to qualify, you must have:
1. a documented income decline of 15 percent or more due to unemployment, underemployment or illness
2. failed to pay your mortgage for three months
3. received a foreclosure notice
4. live in the distressed property
5. an income of less than $75,000 or 120 percent of area median income, whichever is greater
Should a homeowner qualify for these loans and remain in their home for five years beyond EHLP’s two-year duration, the loans may be forgiven. Applications will be taken from today until July 22, 2011 only and eligible participants will be selected via lottery. EHLP estimates that there is funding for 1400 distressed homeowners in Minnesota. Assistance is available for 24 months or a maximum amount of $50,000[2]. EHLP is part of Dodd-Frank Wall Street Reform and Consumer Protection Act through HUD.
Do you think that a lottery is a fair way to administer these funds?
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[1]http://www.startribune.com/business/124984364.html [2]http://ehlpminnesota.com/
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