Homeowners in 27 states and Puerto Rico are now eligible for a part of $1 billion set aside as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act in order to pay a portion of their monthly mortgage. Homeowners who have experienced a reduction in income “due to involuntary unemployment, underemployment, economic conditions or medical condition” are eligible for the program. They can have part or all of their mortgage paid for two years or up to $50,000 if they qualify.
The following states are eligible: Alaska, Arkansas, Colorado, Hawaii, Iowa, Kansas, Louisiana, Maine, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Mexico, New York, North Dakota, Oklahoma, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming and Puerto Rico. HUD expects to help up to 30,000 distressed borrowers and that the average loan will be approximately $35,000. The loans are interest free and, in some cases, may be forgiven if payment and residential requirements are met in the future.
Do you think that this program is going to have a significant impact on the housing situation in this country? Is it possible to truly help distressed homeowners out in a permanent way?
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