HUD PRESS CONFERENCE AT NEIGHBORHOOD HOUSING SERVICES ANNOUNCING 33 MILLION IN HOMEOWNER RESCUE


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33 MILLION IN HOMEOWNER RESCUE

Connecticut and federal authorities on Wednesday October 6, 2010 unveiled a $33 million rescue package for mortgage borrowers on the verge of losing their homes to foreclosure at the Neighborhood Housing Services of New Haven.
Connecticut Congresswoman Rosa DeLauro and the federal Department of Housing and Urban Development Regional Administrator Richard A. Walega said the funds will be routed to residents through the state's Emergency Homeowners Loan Program.
HUD says it will begin accepting relief applications before the end of the year.
"We want to help as many Connecticut residents as possible, and this grant will enable struggling Connecticut homeowners to have a greater opportunity to keep their homes," Gov. M. Jodi Rell said in a statement praising the relief.
Eligible for mortgage aid are homeowners at risk of losing their homes either because they lost a job or took a new job paying at least 15 percent less than their old one, and those struggling with burdensome medical bills. Aside from proving they can repay their debt in full, borrowers must live in their houses and cannot have a second home.
Relief can be either a "bridge loan'' or temporary suspension of mortgage interest, reduced principal and interest payments, or, in some cases, foregiveness of the debt, officials said.
An estimated 41,000 foreclosures have occurred in Connecticut the past two years, authorities said.
The Connecticut rescue is part of a $1 billion home-borrower rescue package offered under the recent Dodd-Frank financial overhaul President Obama signed into law in July.
Thirty-two states and Puerto Rico will get a proportionate share of the money tied to their ratio of overall housing defaults.
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