Homeowners facing foreclosure can now tap into a $1 billion program of emergency loans to help tide them over a temporary financial crisis, the Department of Housing and Urban Development (HUD) has announced.
Beginning today, homeowners in 27 states can file preliminary applications for the Emergency Homeowner's Loan Program (EHLP). Eligible homeowners can obtain interest-free loans of up to $50,000 to help cover mortgage expenses for up to two years.
http://community.nasdaq.com/News/2011-06/1-billion-in-homeowner-aid-offered.aspx?storyid=81588
This does nothing to reduce debut burden which is the core problem here. After the loans run out homeowners who own property they can't afford will still default. The money will go directly to the banks, who will still end up owning most of the property. The timing is also questionable - two years from July wraps the next election. Another billion in taxpayer wealth transferred to Wall Street.