'Hardest Hit Fund' Aims to Help Struggling Homeowners
- Help for many will come in the form of a refinance or loan modification.
Florida, Nevada, Arizona, California and Michigan Share $1.5 Billion in Housing Funds
The reason Florida, Nevada, California, and Michigan are getting extra support in housing is because they are among the hardest hit by the housing crisis we are now ebbing out of. Not only that, these states have also showed exceptional innovation when it comes to new programs to solve the problem. The program, part of the Hardest Hit Fund, is hoping to help more than 70,000 homes in these states recover rather than foreclose in the coming months.
Recovery for many will be in the form of a loan modification or refinance. Both options offer reduced principles and lower monthly payments. The situation of homeowners in these states will determine which of these options they will use. In Arizona, for instance, a program will match up to $50,000 of the loan if the conditions are right.
One of the bigger problems with this program that is yet to be resolved is how it will go over with the financial institutions involved with the loans. Consumers are not going to be approached if they qualify, and it may only be those who seek out this program that will take full advantage. If you live in these states and think that you may qualify, do not expect to get an answer by waiting. Taking action now to find out what your options are is the best way of knowing if thousands of dollars in savings are being offered to you.