The U.S. Department of Housing and Urban Development has awarded Pennsylvania $105 million to help homeowners facing foreclosure, Gov. Tom Corbett’s office said.
The money is intended for families in danger of losing their homes due to involuntary unemployment, under-employment or medical reasons, Corbett‘s office said.
The money is being delivered through HUD‘s Emergency Homeowners’ Loan Program, and the Pennsylvania Housing Finance Agency is administering disbursements.
Homeowners will be offered:
- Balance payments.
- Deferred-payment bridge loans for up to $50,000 with zero interest.
- Help with payment of arrearages for homes in imminent danger of foreclosure.
- Up to 24 months of monthly payments on mortgage principals, interest, mortgage insurance premiums, taxes and hazard insurance.
To receive help, homeowners’ gross income must be at least 15 percent lower than the pre-foreclosure income and they must be at least three payments behind on their mortgage. There must also be a reasonable likelihood that they will be able to make their first mortgage payment on their own within two years, and the property must be owner-occupied and the homeowner’s principal residence, Corbett’s office said.
Homeowners interested in applying for the program must do so through a counseling agency approved by the PHFA Homeowners’ Emergency Mortgage Assistance Program.
Residents can call 800-342-2397 for a list of approved agencies. For more information, click here.