Thursday, August 12, 2010

New Money to Prevent Foreclosures

Fresh money is being pouring into the fight against foreclosure in 17 states. The Hardest Hit Fund is being strengthened in the ten states that originally got two rounds of cash—Arizona, California, Florida, Michigan, Nevada, North and South Carolina, Ohio, Oregon, and Rhode Island—and seven new states: Alabama, Illinois, Kentucky, Mississippi, New Jersey and the District of Columbia. These are all areas that have experienced unemployment rates higher than the national average. In total, $3 billion will go towards helping out homeowners whose ability to pay their mortgages was hit by an event such as the loss of a job. Homeowners may be eligible for up to $50,000 in interest-free loans to cover mortgage interest and principle, mortgage insurance, hazard insurance, and taxes until they are employed once again and can resume their home payments.
Other states with unemployment higher than the national average may apply for housing funds, too. Right now, each state is responsible through their state housing agency for their own particular guidelines. If you are a resident of one of these states, contact your housing authority (links above) to see when the rollout will be for your state. For instance, Ohio’s is September 27th. Remember that while the general purpose is the same, each state will have its own rollout date AND eligibility rules. Finally, other states may apply for money, too, so if you are in a high-employment state or locality, check your housing authority or foreclosure resources in your state.

***Update: for states not covered by this, a new program has emerged in 2011

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