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Franken announces emergency loans for homeowners facing foreclosure

  • Blog Post by: Howie Hanson
  • July 6, 2011 - 3:05 PM

U.S. Sen. Al Franken, DFL-Minn., said today that qualified Minnesotans in danger of losing their homes because they've lost a job during the economic downturn or have been hit by unaffordable medical bills can apply for a zero-interest loan and other assistance to avoid foreclosure through the federal Emergency Homeowners' Loan Program (EHLP).

Minnesotans who are interested in applying for the EHLP need to fill out a pre-application and submit it by July 22. Sen. Franken has set up a page on his website to help people navigate the process and determine whether they qualify for an EHLP loan.

"Too many Minnesotans face foreclosure because they've lost a job or have been hit by high medical bills during this terrible economy," said Sen. Franken. "These loans will help keep Minnesotans in their homes by giving them the ability to weather this crisis until they can get back on their feet."

The EHLP provides zero-interest bridge loans as well as ongoing monthly assistance to households in danger of foreclosure who had income under $75,000 or 120% of the Area Median Income prior to losing a job or becoming underemployed in the economic downturn or who have been hit by unaffordable medical bills. Established in the Wall Street Reform bill, the EHLP is a $1 billion national program run by the Department of Housing and Urban Development (HUD) and in partnership with NeighborWorks America. Approximately 1,400 Minnesota households could benefit from EHLP.

Source: Franken press release. Franken photo: Howie Hanson / For StarTribune.com

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