Friday, July 22, is an important day for distressed homeowners having trouble making their mortgage payments.
That day is the deadline for at-risk Washington state homeowners facing foreclosure to qualify for the Emergency Homeowners' Loan Program. For those who qualify, it's an interest-free bridge loan of up to $50,000 to help homeowners get current on their mortgage payments.
This Friday is also when the state's Foreclosure Fairness Act begins, allowing homeowners facing foreclosure to request a neutral, third-party mediator to come to a resolution with the lender.
The Emergency Homeowners' Loan Program is for homeowners who are facing foreclosure because they lost income because of a change in employment or high medical bills.
Homeowners who think they might qualify are encouraged to go online to FindEHLP.org and read what the program offers, said HUD spokesman Lee Jones. That's where homeowners can fill out and submit the two required forms, as well as find links to other organizations willing to provide assistance. People with questions can also call 855-346-3345.
The Foreclosure Fairness Act allows homeowners who are in the foreclosure process as of July 22 to request mediation with their lender, but it must be done through a housing counselor or attorney.
"It's important to contact a housing counselor or attorney first," said Lyn Peters, director of communications at Washington's Department of Financial Institutions.
The Foreclosure Fairness Act was passed by legislators earlier this year to help homeowners who were having difficulty reaching their lenders.
"I've heard stories of homeowners who have called the lenders multiple times and talked with numerous people, but they have been given different instructions and, essentially, the run around in the system for years without resolution," state Rep. Tina Orwall, D-Des Moines, in a news release.
Orwall was the primary sponsor of the Foreclosure Fairness Act.
For more information about the Foreclosure Fairness Act, see commerce.wa.gov/foreclosures.
