Colorado is one of 27 states to receive funds from the Emergency Homeowners' Loan Program (EHLP) launched by The U.S. Department of Housing and Urban Development (HUD) and NeighborWorks America. The deadline for homeowners to apply for the program is July 22, 2011 and the "Pre-applicant Screening Worksheet" can be found on the site www.findehlp.org. The catch from that point is...what do you do next??
After a week of phone calls to local credit counseling centers in Colorado (most of which had not heard of the program), being put on hold, websites crashing and links not working - it became very clear that the demand from distressed homeowners will exceed the resources available to assist them. It also is imperative for the Counseling Centers in Colorado to become better educated on the EHLP program to service the homeowners seeking the help.
Here are some tips for homeowners wanting more information on the EHLP program. The first step in the process is to determine if you are eligible for the loan program by visiting the HUD website at Hud.gov. Scroll down the page until you see "EHLP Eligibility". After answering the questions and submitting the information, it will be possible to determine if you can move forward to the "Pre-application" process. If eligible, the best next step is to call the EHLP hotline at 1-855-346-3345, or e-mail your questions to ehlp@nw.org.
The Pre-Application Screening Worksheet must be submitted to a Colorado housing counseling agency by July 22nd. There is no difference which agency in Colorado you apply under to receive a loan from EHLP and your chances of winning a lottery position does not increase with multiple submissions. The agencies I found most helpful and knowledgeable were the Colorado Housing Assistance Corporation and the Adams County Housing Authority.
Linda Napier, Vice President of the Colorado Housing Assistance Corp., said the phone calls to their office since the announcement of the EHLP launch have been overwhelming. The counselors in their office are planning an intense training specifically for that program alone. As far as the homeowner eligibility is concerned, Napier said "we are doing our best to educate the homeowners who apply and calling them back if they are not eligible for the program so as not to create a false sense of hope. If they were not 90 days delinquent on their mortgage as of June 1, 2011, they will not be eligible for the lottery. The application requires specific answers and income limits for the homeowner to be eligible for the program. " She added, "All applications go into the same lottery at national and those chosen will be sent back to the agencies that got funded thru CHFA."
The Colorado Foreclosure Hotline is another resource for homeowners sponsored by CHFA (Colorado Housing and Finance Authority). That number is 1-877-601-HOPE. Since it's inception in 2006, "four out of five homeowners who have met face-to-face with a housing counselor through the Hotline have found a successful resolution to their foreclosure situation."
The main goal for distressed homeowners would be to gather as much information as possible about options available and seek the help necessary to make an informed decision. EHLP is certainly an option, however it is set up as a lottery and not a guarantee, so always have a back-up plan and hire a licensed professional to assist you.
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