Government program to give more funds to help unemployed homeowners

The government announced that it plans to give additional help to homeowners who are facing foreclosure. The U.S. Treasury Department is giving an additional $2 billion to the 18 hardest hit states to assist homeowners who are unemployed and facing foreclosure.

“We remain committed to helping struggling homeowners, and this program will provide additional assistance to states hit hardest by unemployment,” Assistant Secretary for Financial Stability Herb Allison in a statement.

Higher than average unemployment

The hardest hit fund offers financial support to the states that have had an unemployment rates above the national average over the past 12 months. The funds go to a variety of state and nonprofit agencies that work with struggling homeowners.

The Treasury Department also plans to launch a $1 billion Emergency Homeowners Loan Program to help homeowners who’ve taken a financial hit due to involuntarily unemployment, underemployment, or a medical condition.

Who can be helped

Homeowners who are eligible for help under the hardest hit program must:

• Be at least three months delinquent on payments and reasonably likely to be able to resume repaying their mortgages within two years
• Have a mortgage on a principal residence and own no second home
• Must demonstrate a stable payment history before their loss of income

Other options include reverse loans

A housing counselor can help determine if you live in an area that is eligible for assistance through the program. A counselor also can discuss other options that might help you avoid foreclosure, such as reverse mortgages. Homeowners who are 62 and up can apply for a reverse loan, but reverse mortgages are not right for everyone. Consider other solutions first, like refinancing or selling your home.

This entry was posted on Thursday, August 12th, 2010 at 4:49 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.