National News

Government OKs $600M in housing aid for N.C., four other states

Posted August 4, 2010

— The Obama administration plans to send $600 million to help unemployed homeowners avoid foreclosure in five states.

The Treasury Department said Wednesday that mortgage-assistance proposals submitted by North Carolina, Ohio, Oregon, Rhode Island and South Carolina received approval. The states estimate their efforts could help up to 50,000 homeowners.

The administration is directing $2.1 billion from its existing $75 billion mortgage assistance program to a total of 10 states. Each state designed its own plan. Treasury approved money in June for Arizona, California, Florida, Michigan and Nevada.

The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. More than 40 percent, or about 530,000 homeowners, have fallen out of the administration’s main effort to assist those facing foreclosure. That program provides lenders with incentives to reduce mortgage payments. So far, it has provided permanent help to about 390,000 homeowners, or 30 percent of the 1.3 million who have enrolled since March 2009.

In the latest package of aid, Ohio will receive $172 million — the largest amount of money. That could aid around 15,000 homeowners by helping borrowers pay their mortgage for up to a year while they search for jobs. It could also provide incentives for mortgage companies to reduce borrowers’ mortgage balances.

North Carolina is receiving $159 million, and South Carolina is in line for $138 million. Oregon is receiving $88 million and Rhode Island is receiving $43 million.

“These states have designed targeted programs with the potential to make a real difference in the lives of homeowners struggling to make their mortgage payments because of unemployment,” Herbert Allison, an assistant treasury secretary, said in a statement.

"A good home is a foundation of a stable family, and so these funds are critical to getting these families back on their feet," North Carolina Gov. Beverly Perdue said in a statement. "Although the new programs will not be available until December, other foreclosure prevention resources are available now. I urge families who are currently behind in their mortgage payments to not wait, but contact a local HUD-approved housing counselor.”

More aid to the unemployed is coming. The sweeping financial reform bill passed signed into law by President Barack Obama last month provides an additional $3 billion to help jobless homeowners pay their mortgages.

Of that money, $2 billion is coming from Treasury’s foreclosure-prevention effort. The rest is to be managed by the Department of Housing and Urban Development.


This story is closed for comments.

Oldest First
View all
  • unclegrits Aug 4, 2010

    "Still contemptuous of you to scathe those out there with 15-20 years of experience in their trades who can't find a house to build or a boat to repair."

    The same people that were doing great during the housing bubble? I should feel sorry for them? Did they not have a back-up plan if the market died like many said it would? Did they not save any money? For the record I am 100% for unemployment insurance because that is earned. Getting a handout for you house is not.

  • unclegrits Aug 4, 2010

    "I assure you there were few, if any, $500K loans given to people making $45K a year even at the height of the market."

    The word for the day people is liar loans. They occured, they gave people 500k loans, and they brought down this economy. Sure banks are to blame but so are everyday Americans that took too much out and were dumb enough to get an ARM.

  • unclegrits Aug 4, 2010

    "I pity those who are not able to understand this because they are focused in too hard on THEIR bank accounts"

    And guess what, with this focus I have never missed a payment, have well over a year in savings for an emergency, and have a house that has increased in value even during the downturn. All this without playing the victim card.

  • geosol Aug 4, 2010

    This is just TERRRIBLE!!! The government trying to help people out in stressful times!!! We need more greed, ignorance, and fear!!! That makes me feel better.

  • unclegrits Aug 4, 2010


    Why is everyone in your world such a victim? The truth is that Americans don't save enoguh and are over extended on CC debt. This was the case during the best of times and currently. You can not with a straight face claim that Americans are doing a good enough job taking care of their own finances.

  • WRALblows Aug 4, 2010

    "You are the fool if you think debt spending is good for this country, or any other for that matter. I wish China would cut up our credit cards."

    Do you have even the slightest clue as to the implications of what you just said. My guess is no, you just found another teapeople line to scream. Let me give you an idea of what you said: China dissolves all US lines of credit = children in America begin to starve to death during the next 6 months. No exaggeration required.

  • EZeegoing Aug 4, 2010

    At what point does the government realize that handing out more money only delays reality. The country is bankrupt yet still supporting handouts. Those in need of a job would rather see money put into business tax breaks to allow more hiring.

  • WRALblows Aug 4, 2010

    "Capitialist work for a living and the socilaist are parasites off the working class."

    Saw a bumper sticker similar to this on an old mans Buick. You know, one of the same old guys screaming about cuts to his medicare. He can gladly donate all his social security checks to charity any time.

    We've always had a pseudo-socialist society. To deny that is to live in purposeful ignorance.

  • WRALblows Aug 4, 2010

    "Quick reminder/advice, if you made 45k a year you had no business buying a 500k home."

    The sad part is most of you still believe this. Exaggeration doesn't help. I assure you there were few, if any, $500K loans given to people making $45K a year even at the height of the market.

    But keep making up fluff and garbage that conforms to your opinion. The reality is the average original price of a foreclosed home is $217K. The typical foreclosure costs the bank an average of $77K in fees and lost resale value. Resale value that will haunt your property if you try to move it.

  • between_the_lines Aug 4, 2010

    yay! more handouts!! don't put them back to work, give'em more money! heck, i think i might want to quit my job and receive help with my mortgage. Sweet!