Md. urges struggling borrowers to apply for new program
The new Emergency Mortgage Assistance program -- which gives bridge loans to Maryland homeowners who are unemployed, underemployed or dealing with a medical crisis -- has had 350 applications so far, close to 90 of them to the point of approval.
But the state believes the $40 million it's been allocated by the federal government is enough to help nearly 1,200 people. And it only has until Sept. 30 to commit all that money.
That's why politicians congregated on Deborah Goldring's lawn Tuesday in the sweltering heat to urge more people to apply before it's too late.
Goldring, who lives in Baltimore's Lauraville neighborhood, is an enthusiastic supporter of the program after being approved for one of the no-interest loans, which will pay off her past-due amount and help cover her mortgage payments as she tries to get back on her feet. (She met both the unemployed and medical-crisis criteria -- her husband died in 2007 after a long illness, then she lost her job in late 2009 while still struggling to pay off all the medical bills.)
All her efforts to get a loan modification were for naught, she said, but the application process for the Emergency Mortgage Assistance program was much faster and more productive. As long as she can stay in the home, payment on the bridge loan will be deferred for five years -- at which point it disappears, essentially converting to a grant.
Here's a video of Goldring talking about her journey, with a bit of information about the program woven in:
Here's the full story. (For the backstory about the mortgage-assistance program, see this blog post.)
In Maryland, nonprofit housing-counseling groups are helping people apply for the funding. If you're hoping you qualify but haven't already connected with a counselor, you can go to the state's HOPE site or call the hot line, 877-462-7555.
The state is also setting up appointments to take applications directly from homeowners on Saturday -- June 4 -- at its offices in Crownsville from 9 a.m. to 1 p.m. To reserve a time at the "EMA Direct" event, call 410-514-7446. (You'll need to bring lots of documentation. Check out this Emergency Mortgage Assistance page for advance information.)
And you can also get more information by going to U.S. Rep. Elijah E. Cummings' next foreclosure-prevention workshop, scheduled for June 25.
Update: On a related note, a variety of groups including the HOPE NOW alliance are putting on a general foreclosure-prevention event in Washington this Saturday (June 4) that will be attended by nearly 20 mortgage servicers, lenders and mortgage financiers. Basic details here.
Categories: Foreclosure help, The foreclosure mess
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