In an effort to help distressed homeowners avoid foreclosure, the U.S. Department of Housing and Urban Development (HUD) and NeighborWorks® America launched the Emergency Homeowners’ Loan Program (EHLP) last month. The deadline for applications is July 22, 2011.

The program will aid Puerto Rico and 27 states, and five states operating substantially similar programs are administering EHLP directly. Between the EHLP and the Hardest Hit Fund, a similar program that provides financial aid to 18 states and the District of Columbia, mortgage assistance is now available for unemployed and underemployed homeowners in every state.

Eligible homeowners can qualify for an interest-free loan that pays a portion of their monthly mortgage for up to two years, or up to $50,000, whichever comes first. The loan could also help cover missed mortgage payments or past-due charges, including principal, interest, taxes, insurances and attorney fees. HUD anticipates this program will help nearly 30,000 homeowners, with an average loan of approximately $35,000.

To learn more about the program, visit www.FINDehlp.org or call (855)-FIND-EHLP (346-3345).