Emergency Homeowner Loan Program Hits the Streets

Posted on April 4, 2011

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Great Baltimore Sun article on the latest program to rescue the American dream.

“Borrowers could receive as much as $50,000 in interest-free loans to pay off past-due amounts and to make up to two years of payments. They must have taken an income hit of at least 15 percent, be three to 12 months behind on their mortgage and have a “reasonable likelihood” of being able to get back on their feet.

The emergency help is like loan-to-grant money given to first-time homebuyers: No payments are due for five years, and every year the total is reduced by 20 percent until nothing is owed — as long as the homeowner keeps the property and stays up-to-date on the mortgage during that time.”

Sounds really hopeful, except for all of the programs that have failed before. And who is determining what a “reasonable likelihood” looks like?

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