Online financial news

The Obama administration has announced it will provide another $3 billion in mortgage assistance for unemployed and financially stressed homeowners through two foreclosure assistance program. 

Seventeen states and the District of Columbia will share $2 billion to be allocated through the Housing Finance Agency’s Hardest Hit Fund. Another $1 billion is designated for a new program designed to provide emergency loans to homeowners in all 50 states.  

Eight states newly eligible

  States chosen for the new round of monies under the Hardest Hit Fund have all experienced unemployment rates above the national average over the past 12 months. Eight states are receiving funds through the program for the first time: Alabama, Georgia, Illinois, Indiana, Kentucky, Mississippi, New Jersey and Tennessee. Washington, D.C. is also a newcomer to the fund.   States will use the funds to provide temporary mortgage assistance to unemployed or underemployed homeowners while they seek new or additional work, or take job training. 

Emergency loans for unemployed

  In addition, $1 billion was designated for the newly created Emergency Homeowners Loan Program, which will provide up to 24 months of assistance to homeowners who are at risk of foreclosure due to involuntary unemployment, underemployment or a medical condition. That program will be administered through the Department of Housing and Urban Development (HUD).   To be eligible for the loan program, homeowners must be at least three months delinquent on their home loan, but with a reasonable chance of being able to resume full mortgage payments and other household expenses within two years. They must also have a good payment record on their mortgage prior to the event that led to a loss of income. 

Nine states receiving additional funds

  Nine out of ten states chosen to share $2.1 billion in the first two rounds of funding under the Hardest Hit Fund will get a share of the new $2 billion: California, Florida, Michigan, Nevada, North Carolina, Ohio, Oregon, Rhode Island, and South Carolina. Only Arizona, which was chosen for the first round based on declining home values, is not included in the new round.   The new $2 billion is being distributed among the 17 participating states and Washington, D.C. based on population. California will receive the largest share, more than $476 million, on top of $700 million awarded in the first round of funding. Florida will receive nearly $239 million, on top of $418 million awarded in the first round, while Michigan was designated for more than $128.5 million, on top of $154.5 million previously.   The smallest award is going to the nation’s capital, which will receive $7.7 million.

Similar Posts:

• $1 Billion in Homeowner Aid Offered
• Five More States to Receive Mortgage Assistance
• Anti-Foreclosure Programs Targeted
• Maryland Mortgage Program Boosts Homebuyer Aid
• HAMP Rejections Soar; New Modifications Dwindle