Reston Interfaith Has Funds Available to Help Families Facing Foreclosure

has been awarded funds to administer the Emergency Homeowners' Loan Program to aid Northern Virginians who may have fallen behind on their housing payments due to medical bills, job loss or "underemployment.

The Emergency Homeowners' Loan Program has allotted $46.6 million to Virginia. To qualify, an applicant from Northern Virginia can't have an annual household income of more than $124,200. Individuals are eligible for up to $50,000 in interest-free loans.

Homeowners can click here to read more about the program or click here to apply for assistance. For more information, please contact Laura Gutierrez-Cabrera, Reston Interfaith Intake Coordinator, at 703.956.6722 x.110.

Delays in getting the program kicked off has housing authorities scrambling to quickly attract applicants--the money must be spent by the end of the program's fiscal year, which is coming up in less than three months: Sept. 30.

To be eligible for the program, homeowners must meet the following conditions:

• Involuntary unemployment or underemployment caused by adverse economic conditions or a medical emergency or serious injury;
• A minimum 15 percent reduction in income;
• A minimum three months delinquent on mortgage payments and at risk of foreclosure as of June 1, 2011. Homeowners must have a letter from their mortgage company verifying these conditions.
• A reasonable likelihood to resume full monthly mortgage payments by the end of the program’s second year;
• Income must be less than 120 percent AMI (Area Median Income) or $75,000 
  or below;
• Income will be evaluated along with the income of anyone else on the mortgage note. Only the income of the persons on the mortgage note will be used to determine eligibility.

Qualified homeowners will receive a zero percent interest loan that covers the amount of mortgage payments past due on their primary residence. It will also pay 100 percent of the delinquent amount due to cover property taxes, mortgage and hazard insurance premiums, homeowner association fees and foreclosure-related fees. 

Applications must be received by July 22. After that date, applications will be reviewed by counseling agencies to determine which homeowners are eligible for the program. All homeowners who qualify will be notified before October 1.