“Hardest-Hit” States Expand, & Get $3B Moreby Tim Manni
The monetary support for housing keeps on growing, and so does the list of states hardest-hit by unemployment. The Treasury Department announced two complimentary housing-support programs on Wednesday aimed at helping unemployed borrowers make their payments on time, find a job and attend job training. These two programs are in addition to the relief already being provided to unemployed borrowers in 10 states.
Tuesday’s announcement was a two-pronged attack to support unemployed homeowners in 17 states plus Washington D.C. which have unemployment levels at or above the national average. While the first program is aimed at state-wide relief, the second facet will be under the direction of HUD, and is directed at more-localized relief to (currently undetermined) areas of those 17 states.
“Together, these initiatives represent a combined $3 billion investment that will ultimately impact a broad group of struggling borrowers across the country and in doing so further contribute to the Administration’s efforts to stabilize housing markets and communities across the country.”
To qualify for HUD’s portion of the relief effort, borrowers must be at least three months delinquent, must use their home as their primary residence and must have a good payment record up until their time of financial hardship.
Of the 10 hardest-hit states first approved for state-wide funding, only Arizona was omitted from the additional funding in Wednesday’s announcement. The new list of states available for the funding is listed here. The nine states that already have plans in place can either use this additional money to supplement their ongoing plans, or to help borrowers under the latest initiatives.
States must submit their spending plans to the Treasury by September 1, 2010.