Struggling to pay your mortgage? Late on your payments? In danger of being foreclosed? The federal government has cooked up a sweet deal that could result in a loan you don't have to repay.
The $1 Billion Emergency Homeowners Loan Program is the latest attempt by the Department of Housing and Urban Development to slow down the glut of foreclosures on the market. The program offers interest-free loans of up to $50,000 for people who have lost their jobs. The best part is the loans don't actually need to be repaid, in some cases.
Here's how it works, according to SmartMoney:
"Payments go directly to the lender for a portion of the borrower's monthly mortgage, including missed payments or past due charges. And when the assistance period -- which runs for up to two years -- ends, 20% of the loan is forgiven with each passing year. In other words, for qualified borrowers who stay in their home for at least five years after the assistance period and who don't fall behind on their mortgage Read More »from Newest Govt. Solution to Housing Mess: Free Money for Struggling Homeowners