Wednesday, Sep 21 2011 5:17PM
A Federal plan to prevent foreclosures may come up short
According to a government official, 30,000 homeowners may not get the help they need to avoid foreclosure through a $1 billion federal program, USA Today reports.
Brian Sullivan, U.S. Department of Housing and Urban Development (HUD) spokesman said that his agency is working overtime to approve as many applicants as possible. The Emergency Homeowners' Loan Program, run by HUD, has until September 30 to distribute funds to homeowners in danger of being foreclosed.
Applicants can no longer apply for aid through this program as the deadline passed on September 15. According to HUD, approximately 100,000 people applied. However, numerous applicants either didn't meet eligibility requirements or forgot to include necessary information.
The HUD program has drawn considerable criticism since its inception, including Massachusetts Communities Action Network employee Lew Finfer. He stated that the agency continually delayed the program's start date and gave an insufficient amount of time for individuals to learn about and respond to it.
The program is being offered in 27 states, while five states are providing funds to homeowners without the government's help.