Marylanders facing foreclosure after losing a job or receiving a pay cut could get as much as $50,000 over two years to help with mortgage payments on a principal residence under a new federal program, the U.S. Department of Housing and Urban Development announced Tuesday.
The Emergency Homeowners Loan Program, part of the Wall Street reform law, sets aside $1 billion to help troubled homeowners, including nearly $40 million for low- to middle-income Marylanders.
To be eligible, homeowners must have had at least a 15 percent reduction in income, be three months behind on mortgage payments, received a foreclosure notice and be likely to resume making payments within two years. HUD said the federal money is a no-interest loan, with 20 percent of the amount borrowed forgiven each year that the homeowner stays in the house and keeps up with payments.
The program should be up and running by year-end, and details on where to apply will be released later.
eileen.ambrose@baltsun.com
