Disaster Money, and How to Find It

The terrible tornadoes and storms in the south remind us how fragile life is, and how quickly it (and all our possessions) can be taken away.  Where do you find help?
If a "natural disaster" is declared by the federal government, the Federal Emergency Management Agency is the place to go.  In the case of Alabama, Oklahoma, and North Carolina, web pages have been created to let people know how to get help.  You can follow the links, or remember this number: 1-800-621-3362.  It's the general number to find FEMA disaster assistance.  If you live in another part of the country harmed by a declared disaster, here's a link to all the federally declared disasters for 2011, with links that tell you how to get assistance.  Here, in general, is a step-by-step of what you are eligible for, and how to apply.
Besides help for individuals, the SBA also offers low-interest loans for businesses hurt by disasters.  Likewise, the USDA has disaster assistance programs, and the Internal Revenue Service has a page devoted to tax assistance to disaster victims.  Don't forget to check out your state's page for disaster management--the link is at the bottom of the SBA page.

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. 

Got a Countrywide Mortgage? You May be Eligible for Help.

Bank of America, the new parent company for Countryside, has settled the suits against it by the governments of: Illinois, California, Iowa, Ohio, Texas, Arizona, Washington and Connecticut. The states of North Carolina, West Virginia, Indiana and Michigan were also in settlement talks. They involve accusations of deceptive mortgage practices by Countryside in the last few years. Among the charges by various state's attorneys-general, Countryside offered "teaser" rates that were short-lived and then jumped significantly. It's alleged that they also offered loans to people who could not adequately document their incomes, knowing that they would be unable to pay in the future. The total amount of money under the state settlements could run up to $8 billion dollars, and affect 400,000 borrowers.

What does this mean for you? If you had a mortgage from Countryside, depending on the settlement struck by your state, you may be eligible for a renegotiation of your mortgage, or foreclosure relief. It's earmarked for customers who have been foreclosed on or are in serious risk of foreclosure. In Ohio, eligible mortgage holders should soon start getting letters, telling them about their options. For more information, call 1-800-669-6607.

If you are in one of the other states affected, and have gotten a loan from Countrywide in the past few years, contact the attorney general's office in your state to see if you may be eligible for assistance.