Thursday, Sep 29 2011 4:18PM

Only 15 percent of the 100,000 borrowers who applied for financial aid from the Obama administration's $1 billion mortgage assistance program for unemployed homeowners will receive financial help, according to reports.

The Emergency Homeowners' Loan Program's (EHLP) eligibility requirements were strict, which may have been overlooked when it was initiated, Neill Coleman, General Deputy Assistant Secretary at the U.S. Department of Housing and Urban Development (HUD) said.

The EHLP offered jobless homeowners financial assistance for up to two years or up to $50,000. Coleman said HUD initially estimated more than 30,000 individuals would be qualified for EHLP. However, many applicants were denied because they lacked certain requirements.

"Thousands were disqualified because their income was too high to qualify, but many will suffer foreclosures anyway," said Philadelphia Unemployment Project Director John Dodds. "Many of these people lost their job, got 12 months behind on their mortgage and then went back to work in a similar job."

When the half billion dollars is pulled back by the Obama administration, many rural low-income homeowners who are unemployed may have to find alternative means of financing their homes.

 

For further reference, check out these sources: The Wall Street Journal, HUD Emergency Homeowners' Loan Program