State housing finance agencies (HFAs) in North Carolina, Ohio, Oregon, Rhode Island and South Carolina can begin to use $600 million in foreclosure-prevention assistance from the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (Hardest Hit Fund) under plans approved this week by the Obama administration. The five states submitted foreclosure-prevention proposals under the second round of the Hardest-Hit Fund, which targeted states with high concentrations of unemployment.
On June 23, the administration announced approval of state plans under the Hardest Hit Fund to provide $1.5 billion to the five states with home-price declines of more than 20% (Arizona, California, Florida, Michigan and Nevada).
The second-round proposals approved this week include targeted programs to expand options for homeowners struggling to make their mortgage payments because of unemployment, as well as programs to address first and second liens, facilitate short sales and/or deeds-in-lieu of foreclosure, and assist in the payment of arrearages. States estimate that approximately 50,000 struggling homeowners will receive aid.
Specific implementation timing of each HFA's proposal will vary based on the types of programs offered, specific procurement procedures, and other factors in each individual state, the Treasury Department says.
Of the five states, Ohio is set to receive the most funding, at $172 million, which the state estimates will assist more than 15,000 borrowers. A summary of each state HFA's proposal can be located here.
SOURCE: U.S. Treasury Department