MILWAUKEE - The U.S. Department of Housing and Urban Development's Midwest Regional Administrator, Antonio R. Riley, Milwaukee Mayor Tom Barrett, Common Council President Willie Hines and Alderman Michael Murphy joined forces this morning in conjunction with NeighborWorks® America to announce the launch of the Emergency Homeowners' Loan Program (EHLP), to help homeowners who are at risk of foreclosure in Wisconsin.

Congress provided $1 billion dollars to HUD, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, to implement EHLP. The program will assist homeowners who have experienced a reduction in income and are at risk of foreclosure due to involuntary unemployment, underemployment, due to economic conditions or a medical condition.

Under EHLP program guidelines eligible homeowners can qualify for an interest-free, forgivable loan which pays a portion of their monthly mortgage for up to two years, or up to $50,000, whichever comes first.

"Through this program, the Obama Administration is continuing a strong commitment to help keep families in their homes during tough economic times," Riley said. "There is a real sense of urgency; distressed homeowners only have until July 22, 2011, to apply to see if they qualify for this foreclosure relief program," he said. Riley also said that HUD allocated more than $51 million to fund this program in Wisconsin.

"I strongly encourage people who are facing difficult financial situations and the possibility of losing the home they own to come forward and ask about the help that's available," said Milwaukee Mayor Tom Barrett. "This program may present a path out of a difficult personal financial predicament. Through the Milwaukee Foreclosure Partnership Initiative, we place a strong emphasis on trying to help people stay in their homes. I'm pleased this program will supplement our efforts," he said.

"The wide breadth of the EHLP program is beneficial to distressed borrowers who have come to a point where there are few, if any, options available," said Common Council President, Willie L. Hines, Jr. "When one considers that the program can pay a portion of an approved applicant's monthly mortgage including missed mortgage payments or past due charges including principal, interest, taxes, insurances, and attorney fees, that can bring a true measure of relief and hope for many Milwaukeeans who are at the brink," Hines said.

"The EHLP program is meant to help distressed borrowers who have been affected negatively by the economic downturn and by health or medical issues," Alderman Michael J. Murphy said. "Typically, there is nothing that can be done to help homeowners who are devastated by a layoff or job loss, or who fall ill and are drowning in medical bills," Murphy said. "What the EHLP is offering is a respite for those homeowners, a chance to stabilize and keep their homes out of foreclosure until they can regain their footing on firmer financial ground," he said.

The EHLP program will pay a portion of an approved applicant's monthly mortgage including missed mortgage payments or past due charges including principal, interest, taxes, insurances, and attorney fees. EHLP is expected to aid up to 30,000 distressed borrowers, with an average loan of approximately $35,000.

"This program can assist homeowners in saving their homes from foreclosure, however they need to take immediate action and submit a completed application to one of the participating counseling organizations by the deadline, July 22," said Trena Bond, Executive Director, Housing Resources, Inc, one of the agencies accepting applications.

The EHLP program is a complement to the Hardest Hit Fund which makes available $7.6 billion to 18 states and the District of Columbia that were hardest hit by the housing crisis. The EHLP program will be offered in the following states: Alaska, Arkansas, Colorado, Hawaii, Iowa, Kansas, Louisiana, Maine, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Mexico, New York, North Dakota, Oklahoma, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming and Puerto Rico. Five states operating substantially similar programs are administering EHLP directly: Connecticut, Delaware, Idaho, Maryland, and Pennsylvania. With today's launch, mortgage assistance is now available for unemployed and underemployed homeowners in every state.

Contact information for participating agencies, the Pre-Applicant Screening Worksheet and more information on the EHLP program and its eligibility requirements can be found at www.FindEHLP.org or by calling toll free at (855) FIND-EHLP (346-3345).

The following agencies in Wisconsin will be accepting applications for the EHLP Program:

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