Senator Calls on HUD to Release Foreclosure Funds for Unemployed

Sen. Bob Casey (D-Pennsylvania) says money that has been earmarked to help homeowners who've lost their jobs stave off foreclosure while they look for new work is overdue in being distributed.
[IMAGE] Casey ""sent a letter"":http://casey.senate.gov/newsroom/press/release/?id=b140cf6d-1eb0-4fb1-b43b-cebc87c2f575 to HUD Secretary Shaun Donovan this week, urging him to release $1 billion in funds Congress authorized last year under the Dodd-Frank Act. The legislation calls for HUD to implement the Emergency Homeowners Loan Program (EHLP).

The program, ""announced by HUD"":http://dsnews.comarticles/hud-to-roll-out-emergency-loan-program-for-unemployed-by-year-end-2010-10-08 in early October, provides eligible homeowners with a declining balance, deferred payment ""bridge loan"" of up to $50,000 to assist with payments of past due mortgage expenses, including delinquent taxes and insurance, plus up to 24 months of monthly mortgage payments, mortgage insurance premiums, taxes, and hazard insurance.

The ""money has been slated"":http://portal.hud.gov/portal/page/portal/HUD/documents/EHLP_summary.doc to provide assistance to homeowners in Puerto Rico and the 32 states not targeted by the Treasury's Hardest Hit Fund program. Casey's

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home state of Pennsylvania is allocated to receive over $105 million.

""Unfortunately, the promised funds have still not reached those families who are struggling to make their monthly mortgage payments at the same time they are struggling to find work,"" Casey said. ""Each day that HUD delays getting the funding to the state agencies is another day that unemployed homeowners must wait to obtain the relief that the EHLP is intended to provide.""

John Dodds, director of the ""Philadelphia Unemployment Project"":http://www.philaup.org/, said, ""How many families have lost their homes since October 1st when the $1 billion in federal funds became available? How many more will lose them in the months ahead as HUD slowly decides how to run this program?""

He added, ""We need HUD to work around the clock to get this program operational and we believe sheriff sales should be delayed until people can access the program.""

Casey noted in his letter that the city of Philadelphia's highest court imposed a 30-day moratorium on sheriff's sales on December 23, 2010, following an emergency petition from the Philadelphia Unemployment Project. Local officials also supported the temporary delay in anticipation of the implementation of the EHLP and the receipt of federal funds to assist unemployed homeowners in the state.

""The delay in the disbursement has created a severe burden on states and state agencies that have been designated recipients of funds and, more importantly, unemployed homeowners who live in fear of losing their homes to foreclosure,"" Casey said.