The U.S Treasury Department has allocated funds to all the state housing agencies to help plan a mortgage aid program for unemployed home owners. This plan has already taken effect in Ohio, Oregon, Rhode Island, North Carolina as well as South Carolina where the Federal Housing Authority has received approval for helping home owners through their individually designed foreclosure prevention programs.
Based on the latest report released by the Central Bureau of Economics, 80% of the foreclosures for sale that have taken place across the U.S have been a direct outcome of home owners losing their jobs to the ongoing recession. The current administration is therefore focusing most of the programs aimed at foreclosure prevention to help home owners who have become unemployed without any fault of their own.
With the Treasury Department allocating a considerable amount of funds towards foreclosure prevention, FHA’s across all the states estimate that more than 50,000 unemployed home owners in each state can be supported through the provision of mortgage aid. The aid can be availed by any home owner who has lost his or her job and is facing an impending foreclosure or a final payment warning from the lending agency.
The mortgage aid is also supporting a newly launched FHA Housing Security Program which is providing incentives to lenders to come to an agreeable mortgage modification program with the home owners. Under the security scheme lending agencies are being encouraged to refinance and replace existing mortgages into a 30 year fixed mortgage scheme. As this plan is being backed by the FHA banks and mortgage companies are more open to modifying the loan patterns for home owners who have been unable to pay their mortgage due to a sudden job cut.
In the state of Texas, more than 70,000 unemployed home owners have received financial support under the mortgage aid scheme. In a large number of cases, home owners who are getting assistance from the FHA belong to mid income families where more than one family member is either on the brink of losing his job or is facing a crisis in his business. The mortgage aid program has therefore proved extremely beneficial in supporting innocent people from losing their homes to foreclosures.
In the state of Florida as well as North Carolina the State Justice Centre has formed a group of counselors to help unemployed home owner’s receive financial aid successfully from the FHA as well as work with the lenders in order to come up with a suitable payment program for the future. While any home owner who has lost his job and is facing a foreclosure notice is eligible for the aid it is important that the mortgage amount that is pending on the property is not exceeding the worth of the house.

This entry was posted on Friday, August 27th, 2010 at 11:44 am and is filed under Foreclosure News.