Here's part of the release:
"This new program will complement Treasury’s Hardest Hit Fund [a now $4 billion fund established last February, going to states with above-average unemployment rates] by providing assistance to homeowners in hard hit local areas that may not be included in the hardest hit target states. Those areas are still being determined.The program will work through a variety of state and non-profit entities and will offer a declining balance, deferred payment “bridge loan” (zero percent interest, non-recourse, subordinate loan) for up to $50,000 to assist eligible borrowers with payments on their mortgage principal, interest, mortgage insurance, taxes and hazard insurance for up to 24 months."
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To be eligible, borrowers have to be at least three months behind on payments and, "have a reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years."
I'm not sure what that means, but that's just me.
They have to be owner-occupants and not own a second home.
They also have to have had a good payment record prior to unemployment.
At face value it seems pretty basic…the government will lend the borrowers up to $50,000 each for up to 2 years to pay their mortgages.
The loan is 0% interest.
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