Emergency Homeowners' Relief Act - Declares that the purpose of this Act is to prevent widespread mortgage defaults and the distress-sale of homes as a result of adverse economic conditions. Authorizes and directs the Secretary of Housing and Urban Development to make repayable emergency mortgage relief payments on behalf of distressed homeowners when he determines that such action is necessary and that there is a reasonable prospect that the homeowner will be able to make necessary adjustments for the full resumption of mortgage payments. States that such assistance may not be made available unless the mortgagor has incurred a substantial reduction in income as a result of involuntary unemployment or underemployment due to adverse economic conditions, and is financially unable to make the full mortgage payments. Limits the relief payments to a period not exceeding two years. Provides that payments be repaid on such terms as the Secretary prescribes. Requires mortgagors to report increases in income which will permit a reduction or termination of mortgage relief payments. Authorizes appropriations of $500,000,000 for mortgage relief assistance. Grants the Government National Mortgage Association, under the National Housing Act, emergency authority to acquire specified outstanding mortgages upon a determination that the assistance provided by this Act will enable the mortgagor under such mortgage to avoid a default or cure a default before foreclosure without exposing the Association to an excessive risk of loss. Permits the Association to refinance the entire amount of the mortgage, if it deems it necessary in order to assist the mortgagor's financial rehabilitation, and to take other actions to enable the mortgagor to retain the property. Sets forth the powers and authority of the Association with respect to the emergency mortgage relief program authority by this Act. States that such authority may not be exercised after 2 years from the date of enactment. Requires the Secretary of Housing and Urban Development to make periodic reports to Congress on the status of mortgage defaults in the Country, together with recommendations on how such defaults may be avoided.