Some housing market observers in Oregon are optimistic that the area can avoid further increases in the number of bank foreclosures and listings for HUD homes in the coming months as news came out that the latest foreclosure mitigation program is set to distribute funds to troubled homeowners.
According to latest reports, homeowners whose applications were approved under the Mortgage Payment Assistance (MPA) initiative can expect funds to go their way by the last week of April or May. The news has brought hope to 6,000 homeowners who were worried that people who buy foreclosures for sale in Portland and in other areas of Ohio will soon get their homes. The state was one of the 19 regions in the U.S. that received financial help from the Hardest Hit Fund.
Oregon is set to receive $220 million for its MPA initiative. Some housing market observers have stated that the delay had been unfortunate since some of the applicants who signed up for the program during December and January might have already lost their homes and their properties are probably now in the hands of investors who buy foreclosures for sale in Oregon. However, most of them are hoping that the funds will get through in time to save majority of the homeowners from foreclosure.
Analysts have claimed that the program will go a long way towards controlling the rise in the number of bank foreclosed houses and properties under listings for HUD homes since, for the whole state, 6,000 borrowers are set to benefit. They stated that the figure translates to a lot of properties that could be prevented from getting dumped as foreclosures into the market.
The MPA is reportedly the largest foreclosure mitigation program in the state. According to reports, states that were chosen to receive aid from the federal government's Hardest Hit Fund are those with the highest numbers of foreclosures for sale and areas with unemployment rates of more than 12% in 2009. For the MPA initiative, around 15,000 Oregon homeowners reportedly applied during the December 2010 and January 2011 application periods.
Analysts are hoping that the progress in the initiative will help prevent further increases in listings for HUD homes and bank foreclosures in Oregon. Qualified homeowners are set to receive $20,000 or mortgage payments equivalent to a full year, although the money will reportedly be issued directly to borrowers' mortgage lenders. Reports reveal that around 190 mortgage lenders are participating in the program.
