Thursday, December 20, 2012

Ohio foreclosure prevention effort reaches $100M milestone

A statewide foreclosure prevention effort launched in 2008 has reached a milestone, having disbursed $100 million to struggling Ohio homeowners.

Save the Dream Ohio, administered by the Ohio Housing Finance Agency (OHFA), has assisted more than 8,500 homeowners facing default or foreclosure on their homes through its financial assistance packages. Up to $25,000 per household is made available to homeowners needing help making their mortgage payments, becoming current on their mortgage payments, modifying existing loans, eliminating a lien, or exiting their home and avoiding foreclosure.

The program was created to assist homeowners going through unexpected financial hardships such as unemployment, reduced wages, increased medical expenses, or divorce. Sixty-six percent of program participants are currently unemployed and unable to qualify for other loan modification or foreclosure prevention programs.

"OHFA proudly celebrates this significant milestone in our quest to help struggling Ohioans keep their homes," OHFA Executive Director Doug Garver said in a prepared release. "OHFA's work has made Ohio a leader among the 18 states participating in the federal program in terms of the funds distributed."

Funding for the program comes from the U.S. Department of the Treasury's Hardest Hit Fund, which will provide up to $7.6 billion to 18 states and the District of Columbia through 2017.

OHFA administers the program through agreements with more than 350 mortgage servicers and through partnerships with housing counseling agencies in all 88 counties.

Previous reading on BC:
Ohio foreclosure prevention program turns two (10/3/12)
Capacity, funding could hurt demolition initiative (9/25/12)
OHFA issues RFP for study of affordable housing tax credits (3/13/12)
Ohio awarded additional $148M in Hardest-Hit foreclosure funding (8/12/10)
Goal: Preserve 14,000 affordable housing units (8/10/10)