The Obama Administration approved $600 million in federal assistance for struggling homeowners in five states — money that will be used to help the unemployed pay their loans or assist in short sales or similar transactions.
The assistance will be funneled through state Housing Finance Agencies in North Carolina, Ohio, Oregon, Rhode Island, and South Carolina. Up to 50,000 consumers might receive targeted funds.
According to the Treasury Department, the money can be used to aid payments on both first and second liens, or facilitate sales through not only short sales but deed-in-lieu transactions.
To receive the assistance, the five states had to submit 'Hardest Hit Fund' proposals to Treasury by June 1. The money ultimately comes from the Emergency Economic Stabilization Act of 2008, which cost taxpayers $700 billion.
Ohio is set to receive $172 million in funds, followed by North Carolina ($159 million), South Carolina ($138 million), Oregon ($88 million), and Rhode Island ($43 million).
