A federal program to provide temporary loans to homeowners struggling to pay their mortgages will probably fall short of its goal.
A federal program to provide temporary loans to homeowners struggling to pay their mortgages will probably fall short of its goal, the latest in a series of efforts that has left funds allocated by Congress unspent and has failed to help as many troubled borrowers as officials initially hoped, according to the Washington Post.
The program was created under the financial regulatory legislation passed by Congress last year. It targets troubled homeowners who have fallen behind on their mortgages because of job loss or unexpected medical bills. The loans are intended to help borrowers stay current on their mortgages and help cover payments for up to two years or a maximum of $50,000, whichever comes first. The loans are forgiven over five years if the recipients remain in their homes and stay current on their payments.
The program was supposed to begin last year, but implementation delays prevented it from getting off the ground until June. That left little time for homeowners to apply to the program and for officials to sift through the mountain of applications. By law, HUD must commit funds by Sept. 30, the end of the federal government’s fiscal year. Any unspent funds must be returned to the Treasury Department.
For more information, go to the Post article.