A program to help homeowners avoid foreclosure is being extended in Colorado and 26 other states. The Emergency Homeowners Loan Program provides emergency bridge loans to those in danger of losing their homes because of economic hardship.
The U.S. Department of Housing and Urban Development is working with NeighborWorks America, an organization helping low to moderate-income families with housing needs.
“It’s a way for homeowners who are unemployed, underemployed, or have lost income because of a medical illness to fill the gap between making their mortgage payment and not making their mortgage payment,” says NeighborWorks spokesman Douglas Robinson. He says the interest-free loans can go up to $50,000.
The program officially ended on July 27. But HUD officials now say they have sufficient resources to reopen and extend the program through September 15, 2011. Homeowners must apply through a participating counseling agency.