The U.S. Department of Treasury has announced the approval of the Ohio Hardest-Hit Fund plan. The Ohio Housing Finance Agency will use the allocation of $172 million in federal foreclosure prevention funding to help families struggling to pay their mortgages.
“Ohio families have felt the effects of the national housing crisis harder than most. 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,” Governor Ted Strickland said. “The Ohio Hardest-Hit Fund will be another tool for homeowners to stay in their homes, along with ongoing state initiatives like Save the Dream and the Foreclosure Compact that bring homeowners and lenders together to avoid home foreclosure.”
Ohio has received the third largest allocation of Hardest-Hit funds to date as part of the U.S. Treasury’s second round of funding. Governor Strickland, the Ohio Housing Finance Agency, the Department of Commerce and the Save the Dream Ohio partners have worked together to develop a comprehensive, statewide strategy. The plan aims to assist 18,500 unemployed and underemployed homeowners who are experiencing financial hardship and are at-risk of mortgage loan default or foreclosure.
“Governor Strickland and other state leaders have worked tirelessly to address foreclosures in Ohio,” said Kimberly Zurz, Director of the Ohio Department of Commerce and Ohio Housing Finance Agency Board Chairperson. “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.”
Ohio’s program will assist homeowners with financial hardships who have been unable to qualify for existing loan modification and foreclosure prevention programs. Available programs will include: Rescue Payment Assistance, Partial Mortgage Payment Assistance, Modification Assistance with Principal Reduction and Transitional Assistance.
“Through this plan, we will provide resources that were previously unavailable to struggling borrowers,” said Doug Garver, Executive Director for the Ohio Housing Finance Agency. “I am pleased that OHFA will play an active role in this initiative, coordinating a statewide network of partnerships to deliver help quickly to those who need it most. “
"Families worried about losing their homes due to job loss will find hope in this announcement. This aid is not smoke and mirrors, it's real change," said Congresswoman Marcia L. Fudge. (OH-11) "Before the foreclosure crisis made national news, Ohio's families were suffering. The state's mandatory mediation program has had a positive impact on reducing foreclosures, but that effort alone cannot cure all. I’ve long advocated for targeted funding to the hardest hit states, and was proud when the Hardest Hit Fund was established. The President's multi-pronged approach will help families keep their dreams, even in the midst of this recession.”
The Ohio Hardest-Hit Fund plan will launch September 27, 2010 but borrowers who are in need of immediate assistance should visit the Save the Dream Ohio website at http://savethedream.ohio.gov/ or call the hotline at (888) 404-4674 to get free assistance and speak directly with a housing counselor.
Visit www.ohiohome.org to read Ohio’s Hardest-Hit Fund proposal submitted to U.S. Treasury in its entirety.
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