Additional help for troubled homeowners has been announced by the Obama administration in the form of $3 billion in additional funding toward the existing foreclosure prevention funding being called the “Hardest Hit Fund.”
$1 billion will offer loans through nonprofit agencies and local housing authorities to mortgage borrowers who have lost their jobs. These loans will be made for up to $50,000 at 0% interest for upwards of 24 months.
This portion of the fund has been dubbed by the department of Housing and Urban Development (HUD) as the “Emergency Homeowner Loan Program” with further details to be released later this month.
The additional $2 billion will expand the current funding toward the 10 hardest hit states (and add seven new states to the funding list), each of which have already submitted unique proposals as to how they will use the existing $2.1 billion in funds.
After the continued failure of government reaction to the housing crisis in the form of programs like the Home Affordable Modification Program (HAMP) and rumors of homeowner debt forgiveness leaking from the White House, the administration is grappling with how to solve the crisis.
We want to know- do you think the government aid programs and funding from all different angles be it loans, debt forgiveness or otherwise, helps homeowners and the housing sector or hurts?
