Additional help for troubled homeowners has been announced by the Obama administration in the form of $3 billion in additional funding toward the existing foreclosure prevention funding being called the “Hardest Hit Fund.”
$1 billion will offer loans through nonprofit agencies and local housing authorities to mortgage borrowers who have lost their jobs. These loans will be made for up to $50,000 at 0% interest for upwards of 24 months.
This portion of the fund has been dubbed by the department of Housing and Urban Development (HUD) as the “Emergency Homeowner Loan Program” with further details to be released later this month.
The additional $2 billion will expand the current funding toward the 10 hardest hit states (and add seven new states to the funding list), each of which have already submitted unique proposals as to how they will use the existing $2.1 billion in funds.
After the continued failure of government reaction to the housing crisis in the form of programs like the Home Affordable Modification Program (HAMP) and rumors of homeowner debt forgiveness leaking from the White House, the administration is grappling with how to solve the crisis.
We want to know- do you think the government aid programs and funding from all different angles be it loans, debt forgiveness or otherwise, helps homeowners and the housing sector or hurts?
Ray
August 12, 2010 at 1:54 pm
I’m so glad I get to pay other people’s mortgages… Should I just stop paying mine and wait on a bailout?
Eric Hempler
August 12, 2010 at 3:28 pm
I think their time could be better spent figuring out a way to create more permanent jobs. I don’t think housing will truly recover until more people are working.
Lani Rosales
August 12, 2010 at 6:45 pm
I couldn’t agree more, and I think most people in the industry that are educated on the matter agree as well. Thanks for the attention, White House, but it won’t do any good if no one’s employed. #jobsftw
Al Lorenz
August 12, 2010 at 7:57 pm
Of course it is not helpful. The markets will not recover until the government gets its nose out of things it should never have been in. Then we’ll see jobs and broad economic recovery that includes housing.
Justin Boland
August 13, 2010 at 12:10 pm
Great line from the NYT yesterday sums it up perfectly…
“…one of the paradoxes of the recession: the more money you borrowed, the less likely you will have to pay up.”
At the same time, though….I don’t think “Fairness” is really the issue to focus on. The real problem here is a systemic collapse of the US economy….and this is barely even a stop-gap measure. It’s a reponse to the news from March-April, driving with the rear-view mirror.
Chris @ Jacksonville Homes
August 17, 2010 at 6:43 am
This sounds great, I hope the government will provide more fund to help the home owners to prevent loosing their homes.