Administration providing $1.5 billion to assist homeowners in select states
Last week, President Obama announced a plan to direct $1.5 billion in aid to distressed homeowners in states hit the hardest by the housing crisis. During a town hall meeting held in suburban Las Vegas, the President stated, “Government has a responsibility to help deal with this problem.”
The money is earmarked for Arizona, California, Florida, Michigan and Nevada. According to the administration, the average home prices in these states have fallen by more than 20 percent since the housing peak in 2006. Money will come from the $50 billion set aside in 2009 for the Troubled Asset Relief Program (TARP).
Funding will be made accessible to state housing agencies, who will be expected to create programs to help homeowners struggling to meet their mortgage obligations - either because of unemployment, they are carrying a second mortgage or are “underwater”, owing more than their home is worth. According to the New York Times, “State housing officials will be required to submit proposals to the Treasury Department, which will review and approve them.”
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Posted by Sharon Walker
