Many homeowners are facing foreclosure but a program exists to help relieve some of the pressure.

Q: How can the Emergency Mortgage Assistance Program help me?

The Emergency Mortgage Assistance Program (EMA), also called the HOPE loan, is to help homeowners avoid foreclosure.

The EMA is a zero interest loan, up to $50,000, where you make no payments as long as you stay within the guidelines.

The homeowner would be required to contribute 31 percent of their current gross income to their mortgage payment. The loan would kick in to cover the difference.

You would have this assistance until one of the following happens:

After 24 months of payments have been made
If the property was sold or the homeowner bought a second property
If you missed a monthly mortgage payment or failed to report an increase in income.

Q: I’m six months behind on my mortgage payments, is it too late?

No!

EMA is designed to help homeowners who are anywhere between 3-12 months behind on their mortgage payments on their first loan.

Q: Do I pay this loan back?

That depends on how you manage your mortgage payments after the assistance period of 24 months comes to an end. As long as you make your mortgage payments on time for five years, you will never repay this loan.

The loan amount owed decreases by 20 percent per year for five years. At the end of that five years, the loan is forgiven.

However, if within that five years you miss a mortgage payment or sell the home, you would be required to pay back a portion of that loan.

Q: Am I qualified for the EMA?

Qualifications for this program include those who:

Are earning 15 percent or less than they were prior to a medical or economic hardship (loss of job).
Have a household income of less than 120 percent of the Area Median Income (AMI). In Baltimore, the AMI is $82,200. This means you can have a household income of $98,640 or less and qualify.
Are between 3-12 months behind on your mortgage payments on your first loan.
Have a reasonable likelihood that full mortgage payments can be resumed within two years.

Q: How do I apply for the EMA program?

The first step in applying for EMA is to contact an approved counseling agency. They will help to make sure you’re qualified and walk you through the paperwork process. You can find an approved agency by clicking here.

You can also call the HOPE hotline at 1-877-462-7555 for more information.

About this article: Claudia has been in the real estate and mortgage business for 9 years and brings wisdom and perspective to the ever-changing face of Severn housing and development. Count on her each week to keep you updated on what’s happening in your backyard, literally![source]