State foreclosure prevention plans have been set in place by funding made available from the Obama Administration’s Hardest Hit Fund, and it’s hoped that these individual state programs will be able to address homeowner needs in situations where negative equity may be causing a problem or unemployment has made meeting mortgage payment obligations difficult. Programs like the Home Affordable Unemployment Program and the Principal Reduction Alternative program are available to aid homeowners in certain situations, but it’s believed that housing agencies which address homeowner needs on a state-by-state basis may have more success in some cases.
Many of these state-specific programs mirror the Obama Administration’s mortgage assistance plans, but for those that don’t, they still offer aid in certain situations to homeowners suffering from similar problems. Numerous states, like Michigan, California, Florida, North Carolina, and others were offered funding from the Hardest Hit Program in order to implement these assistance plans.
Understandably, each program may differ from state to state, but there are opportunities for homeowners to receive financial assistance for their mortgage needs. As an example, the Michigan State Housing Development Authority offers plans to homeowners, like mortgage payment assistance to unemployed homeowners or funding to assist homeowners who are seeking a principal reduction.
Another popular program has been the California Keep Your Home Program, which also addresses problems like homeowner delinquency, unemployment, and underwater mortgages. There are also plans, like those in North Carolina, which may offer homeowners loans at 0% interest which will be used to make mortgage payments to mortgage servicers, and in cases where homeowners meet specific requirements, these loans may be forgiven after a set period of time.
The state foreclosure prevention programs are, obviously, no guarantee to correct problems in the housing market as there are numerous problems that still remain concerning homeowners and their ability to make their mortgage payment. However, it’s hoped that these assistance plans and the states which have been particularly troubled due to the slow economy and unemployment will be able to offer individual homeowners assistance which would allow them to keep their home until a time that they can get back on their feet and to a level that allows them to afford their home loan payments.