The U.S. Department of Housing and Urban Development (HUD) is now offering federally funded, declining balance, deferred payment “bridge loans” of up to $50,000 to homeowners who are struggling financially. Thirty-two states are able to access these funds, although Illinois is not one of them at that this time. Illinois (Chicago) residents can apply for Hardest Hit Funds, instead.
Homeowners with unpaid property taxes, mortgage or homeowners insurance, and/or principal payments may benefit from this program. Borrowers do not have to be employed to qualify for this loan.
To qualify, a homeowner needs to be more than three months behind on payments and have the potential to start making monthly payments within two years and have experienced a fifteen or more percent decrease in yearly income. They also must reside in the a state that participates in the federally sponsored program. The home must be the homeowner’s primary residence. Applications are expected to be offered by the end of 2010. Visit here for more information.