“I’ve rarely been so disappointed in a government agency,’’ said Frank, a Newton Democrat.
To be eligible for a loan, homeowners must have lost at least 15 percent of their income because of “adverse economic conditions,’’ or suffered a serious medical problem. In addition, they need to be at least three months behind on mortgage payments and have received a foreclosure notice from a lender.
Applicants are being turned down for a variety of reasons, housing advocates say. Some have been told their incomes haven’t dropped enough, or that even with federal help they don’t earn enough to keep up with their mortgage payments.
Senator Robert Casey, a Pennsylvania Democrat, yesterday filed a bill that would extend the deadline for funds to be allocated until the end of the year for people who have already applied.
Meantime, Lewis Finfer, executive director of the nonprofit Massachusetts Communities Action Network, said housing advocates are urging federal officials to give applicants provisional approvals in advance of next week’s deadline.
“I’m really angry,’’ said Finfer, who has been fighting to help jobless homeowners for several years. “People are hurting and losing their homes and this program could help them and there is some significant number who can’t get helped.’’
The program’s lackluster results come at a time when thousands of Massachusetts homeowners are struggling to keep their homes. During the first seven months of the year, 6,856 mortgage holders went into foreclosure and another 4,530 lost their homes, according to Warren Group, a Boston company that tracks local real estate data.
HUD spokesman Brian Sullivan would not address complaints about how the program is being administered, but he acknowledged fewer homeowners will receive loans than originally expected.
