The Real Deal Miami

Obama extends deadline for homeowners loan program

August 30, 2011 12:12PM

The Obama administration is giving unemployed homeowners in 27 states extra time to apply for a new $1 billion foreclosure-prevention program, due to a lack of qualified applicants, the Wall Street Journal reported.
Homeowners have until Sept. 15 to apply for the new Emergency Homeowners’ Loan Program, and must be approved by Sept. 30, when the government’s authority to make new loans expires.
The program, designed to help up to 30,000 unemployed homeowners continue making their mortgage payments, has run into various issues, including delays in launching for several months due to difficulties in coming to agreements with state agencies.
So far, out of 80,000 people who have applied, only about 10,000 have met requirements. When the program finally launched in June, David Berenbaum, chief program officer of the Washington-based National Community Reinvestment Coalition, which is helping out with the program, admitted it would be challenging to enroll borrowers within such a short time. [WSJ]