HUD extends foreclosure relief for jobless

People struggling to keep their homes due to job struggles will have more time to seek government assistance, according to the Department of Housing and Urban Development (HUD).

On Monday, HUD announced that it had enough funds left over from its Emergency Homeowners' Loan Program to continue accepting applicants until Sept. 15. The program can provide up to $50,000 in interest-free loans to homeowners struggling to avoid foreclosure due to unemployment or underemployment. It was originally slated to close its doors July 27.

The $1 billion program, created by the Dodd-Frank financial reform law, will continue to accept applicants in 27 states and Puerto Rico. Homeowners interested in participating must contact a qualified housing counselor to see whether they qualify. Homeowners are still required to make a small, monthly payment on their mortgages under the program.

The extension comes as policymakers have struggled to find any way to boost the ailing housing market, which has continued to decline for years and is serving as a major drag on the struggling economic recovery.