WASHINGTON, DC – U.S. Senator Bob Casey (D-PA) on Friday introduced a bill that would provide HUD with a processing extension for the Emergency Homeowners Loan Program (EHLP).
“This is a common-sense measure that will allow homeowners who have already applied the chance to avoid foreclosure,” said Senator Casey. “This program provides stability and a measure of hope for families across Pennsylvania. Thousands of families have taken the necessary steps to remain in their homes and we should not let government paperwork stand in the way.”
The Emergency Homeowners Loan Program prevents foreclosures by offering temporary mortgage assistance to borrowers facing temporary loss of income due to illness or unemployment.
Estimates suggest thousands of homeowners across the country who took the time to apply to the program have not had their applications reviewed. In Pennsylvania, as of last week, the Pennsylvania Housing Finance Agency reported it had 2,000 applications currently in process but likely not enough time to review them. Under statute, all unobligated funds need to be returned by September 30, 2011.
Homeowners who spent the time applying for the program should have their applications reviewed. S. 1623 would give HUD an additional three months to process applications received prior to the deadline to allow all interested applicants the chance to participate.
Senators Schumer, Shaheen and Kerry are cosponsors of the bill.