HUD Offers $1 bln in Interest-Free Loans to Reduce Foreclosures

The Obama administration will offer $1 billion in zero-interest loans to help homeowners who’ve lost income avoid foreclosure as part of $3 billion in additional aid targeting economically distressed areas. Under the new $1 billion program, the Department of Housing and Urban Development [HUD] will offer loans of up to $50,000 to borrowers “in hard hit local areas” to make mortgage, tax and insurance payments for as long as two years, HUD said today in a statement – Bloomberg

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