Requirements
1.Borrowers must have a track record of making mortgage payments on time.
2.It must be the primary residence and at risk of foreclosure.
3. Combined household income must not exceed 120% of the median income in the area.
If eligible, a homeowner makes a fractional payment to the Department of Housing and Urban Development (HUD) instead of the lender. Provided the homeowner has a reasonable probability of resuming mortgage payments, HUD will assume full payment to the lender. Once the homeowners immediate financial problems are resolved, they re-assume full responsibility for the mortgage and pay back the HUD for the temporary loan.
Funding is not available in all states, only the hardest hit and the program is funded with 1 billion now and hopefully more later, depending on the success of the program. HUD counts 32 states and Puerto Rico as recipients of the HEMA program. Borrowers must meet with their local NeighborWorks. HUD hopes to begin accepting applications by the end of the year.
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