Washington, DC – October 7, 2010 – (RealEstateRama) — Congressman Earl Pomeroy and Senators Kent Conrad and Byron Dorgan announced today that the U.S. Department of Housing and Urban Development (HUD) has awarded an Emergency Homeowners Loan Program (EHLP) grant for $1,320,547 to North Dakota to provide “bridge loans” to homeowners struggling with home payments.
The zero interest loans will provide assistance—for up to 24 months—to North Dakota homeowners at risk of foreclose who through no fault of their own have experienced a substantial reduction in income due to unemployment, underemployment, or a medical condition.
The Wall Street Reform and Consumer Protection Act, signed into law in July, authorized HUD to administer Emergency Homeowners Loan Program funding
The loans made possible by this grant will provide eligible homeowners with up to $50,000 to help with payments of arrearages, monthly mortgage payments, insurance premiums, taxes, and hazard insurance. HUD will begin taking applications from North Dakota homeowners by the end of the year.
“The recent housing crisis created a clear need for this kind of relief for struggling homeowners in North Dakota,” the delegation said in a joint statement. “This funding means that our state’s growing economy will have some protection from predatory lending practices.”