July 22 deadline to apply for federal help to avoid mortgage foreclosure

July 22, 2011 is the last day to apply for federal assistance to keep your mortgage out of foreclosure.

The The U.S. Department of Housing and Urban Development (HUD) in conjunction with NeighborWorks® America has a program called the Emergency Homeowners’ Loan Program (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 loan which pays a portion of their monthly mortgage for up to two years, or up to $50,000, whichever comes first.

Locally, the program is administered by Parkwood Services. The documents and instructions are on their website.

You can get started by downloading the Mortgage Default Intake Packet, filling it out completely, and mailing, or faxing it to Parkwood. You may wish to complete the online form in addition to the intake packet for faster service.

Whether you qualify or not, counselors at Parkwood offer information on the foreclosure process, and can provide one-to-one assistance to access community resources, develop a household budget, and negotiate with lenders for loan modifications or other repayment strategies. These are free services.