Created in 1983, by the Pennsylvania Housing Finance Agency, the Homeowners Emergency Mortgage Assistance Program boasts an 80% success rate in preventing foreclosures. It is funded by the state and borrowers’ repayments, has come into the spotlight in recent weeks as the president searches for a way to help the unemployed stay in their home. (Click here for more info on Obama Loan Modification Program)

It works by housing counselors sending the agency applications of those suffering temporary hardships beyond their control. Those who have their emergency foreclosure loans applications approved, could have their arrears wiped out, their monthly mortgage obligation covered, or both. The success of the program depends on the careful scrutiniztion of the applicant’s background. Those with excesive credit card debt for instance are not likely to be awarded whereas those with the prospect of finding a job within months or a year will easily qualify. Basically, the applicant must have a reasonable prospect of resuming full payments within 36 months and of paying the mortgage in full.

With this Homeowners Emergency Mortgage Assistance Program, loan payments are made directly to the servicers and a lien is placed on the property. The aid is repaid at a 5.25% interest rate over 10 years on average, though the borrower’s financial circumstances are taken into account.