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FEDERAL FORECLOSURE HELP
Homeowners facing possible foreclosure may apply for federal, interest-free loans that would pay monthly mortgage bills for up to two years or up to $50,000, whichever comes first.
The Emergency Homeowners' Loan Program has been rolled out by the U.S. Department of Housing and Urban Development and NeighborWorks America, a network of community development nonprofits.
A $1 billion allocation, set to relieve up to 30,000 households nationwide. They can use the money to pay off other past-due charges, such as taxes. Payments will be sent directly to lenders. The help is for homeowners whose income has dropped at least 15 percent from 2009 levels due to layoffs, reduced earnings or medical emergencies. They must be at least three months late and the monthly mortgage must exceed 31 percent of monthly income. Under eligibility rules for Long Islanders, the maximum household income is $124,300.
Homeowners must fill out a worksheet and send it to a HUD-approved nonprofit participating in the program. That deadline is July 22. The nonprofit will then contact those who meet the criteria to fill out the formal application. HUD has limited the number of people to be approved per nonprofit and also for each metropolitan area, but officials did not provide the figures for Long Island.
"It's a $50,000 lottery ticket for those who get it," said Michael Smith, president of SafeGuard Credit Counseling Services in Hauppauge, one nonprofit in the program. "It's a home run."
When it comes to getting mortgage relief, jobless homeowners probably face the most extreme challenge. Lenders see little benefit in improving loan terms for borrowers who have no income. While the federal Home Affordable Modification Program for borrowers has a limited plan to help the jobless, Smith said it has not been working well. "HAMP relies on the banks to have their act in gear," he said. But in this latest rescue plan, HUD officials will decide who gets the help.
Borrowers must not be delinquent on any federal debt, such as income taxes.
Also, those in bankruptcy or in a loan modification program are not eligible. Homeowners who fit the criteria will still have to pay $150 monthly on their mortgages or 31 percent of their income, whichever is greater. For details, go to findehlp.org or call 855-346-3345. -- ELLEN YAN
LET'S SWAP?
A Hamptons homeowner wants to trade his home for either an East End waterfront property, a New York City condominium or commercial property.
The 8,800-square-foot North Haven home is on the market for $2.995 million. The Mediterranean-style house was built in 2008 and has seven bedrooms, nine baths and four fireplaces. There are two master suites, each with a fireplace. The home is on almost two acres with a gunite pool and spa, and a media room.
"After a meeting of the minds, the homeowner and I decided to try this," says listing agent Jeanine Edington of Prudential Douglas Elliman Real Estate. "I've done it before . . . and it has worked."
The homeowner has uses in mind: On the waterfront land, he'd build another house. He'd set up his father in the New York City condo. As for commercial property -- it would sustain itself through rent and appreciation. -- ANN SMUKLER
