Thursday, August 5, 2010

Ohio one of five states to receive federal foreclosure funds

The State of Ohio is one of five states awarded federal foreclosure prevention funding in the second round of HFA Hardest-Hit Fund allocations.

The Ohio Housing Finance Agency (OHFA) will administer the $172 million award through its Ohio Hardest-Hit Fund (OHHF) program, set to launch on September 27.

Developed by the OHFA, Ohio Governor Ted Strickland, the Ohio Department of Commerce, and the Save the Dream Ohio partnership, the statewide OHFF strategy aims to assist 18,500 unemployed and underemployed homeowners who are experiencing financial hardship and are at risk of mortgage loan default or foreclosure.

"Ohio families have felt the effects of the national housing crisis harder than most," Strickland said in a media release. "Through this partnership with the Obama Administration, the Ohio Hardest-Hit Fund will keep more Ohio families out of foreclosure while adding stability to the housing market."

"With these federal dollars in place, we can build on the success of Save the Dream Ohio to continue helping families struggling to maintain homeownership," said Kimberly Zurz, director of the Ohio Department of Commerce and member of the OHFA board.

To be eligible for the program, homeowners must have been unable to qualify for existing loan modification and foreclosure prevention programs. OHHF options include rescue payment assistance, partial mortgage payment assistance, modification assistance with principal reduction, and transitional assistance.

Ohio received the third-largest allocation of the five states. Also receiving funding were North Carolina, Oregon, Rhode Island, and South Carolina.

Earlier this year, Arizona, California, Florida, Michigan and Nevada were awarded $1.5 billion in the HFA Hardest-Hit Fund's first round of allocations.

Previous reading on BC:
Kearney bill could generate funding for foreclosure prevention (8/2/10)
Cole foreclosure proposal deemed a duplication of services (6/15/10)
Cincinnati accepts $8.1M for foreclosure remediation (5/4/10)
Ohio land bank bill now law (4/8/10)
Ohio land banking bill passes House, moves on to Senate (12/21/09)