Agency extends loan deadline for homeowners at risk of foreclosure
The application period for a federal housing loan program has been extended through Sept. 15.
The Emergency Homeowner Loan Program offers interest-free loans of up to $50,000 for as long as two years to help people at risk of foreclosure pay their mortgage. Loans are available to people in 27 states and Puerto Rico who have been hit hard by foreclosure and are struggling to pay a mortgage due to a layoff or underemployment for economic or medical reasons.
Applicants must be at least three months behind on their first mortgage as of June 1, reside primarily in the home at risk of foreclosure, and meet a variety of criteria set by the U.S. Department of Housing and Urban Development, which administers the program with NeighborWorks, a national network of affordable-housing and community-development groups.
Applications were due by July 27 for the Emergency Homeowner Loan Program, but program administrators decided to move the deadline to allow more people to apply for the loan program.
The Grand Junction Housing Authority is authorized to accept pre-applications from anywhere in Colorado for the emergency loans. The housing authority will take information from homeowners and determine whether they are eligible to apply for a loan.
Grand Junction Housing Authority Homeownership Services Supervisor Amy Case suggested homeowners pre-apply as soon as possible because it can take a few days for the housing authority to sort through an applicant’s documents and compile a full application packet for final submission.
Application packets likely will be approved within five to 10 days of submission, and loans may be available as soon as early October, Case said.
The loans are first-come, first-served. Case said fewer than 100 families applied during the first round of applications, but there is not a quota for Grand Junction or Colorado, so late applicants may miss out if people in other states apply more quickly.
“We want as many Colorado homeowners to take advantage of this opportunity as possible,” Case said. “The bottom line is just please start (applying) right now.”