Homeowners in Maine may be able to receive an interest free loan to pay their mortgage. The U.S. Department of Housing and Urban Development (HUD) has started a program that will provide interest-free loans for qualified homeowners in Maine who are behind on their mortgage payments because of lost income due to unemployment or a reduction in income. The loans are being provided as part of the Emergency Homeowners Loan Program.
While the program is still very new, HUD expects the first loans to be given by the end of 2010. The zero percent interest loans will be provided to an amount of up to $50,000. The funds are being provided to assist eligible homeowners who have lost their jobs or income, or who have had a reduction in their income with payments on their mortgage interest, principal, property taxes, and homeowner insurance insurance for up to 24 months.
Under the new zero percent loan program, eligible homeowners must meet the following qualifications.
-The applicant will need to have a home or mortgaged property that is the primary, or so called principal residence of the borrower. Eligible borrowers may not even own a second home.
-Homeowners who need help must be at least three months delinquent in their monthly mortgage payments and have a reasonable likelihood of being able to resume the payment of their mortgage and related housing expenses (such as taxes and insurance) within two years of applying.
-Maine homeowners need to also demonstrate a good payment record prior to the loss of their job or prior to the event that produced the reduction of their household income. So this HUD loan program was not meant to help homeowners in Maine who lived beyond their means, and who were not able to stay current on their housing payments.
To learn more about this program and how to apply for a loan, or to find out about other resources and options that are available to you such as Maine foreclosure diversion program, you can dial 1-800-452-4668.
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