Archive for April 12th, 2011

Mortgage Assistance For Homeowners

The amount of money that was not spent from the $700 billion budget of the federal bank bailout two years ago will be used as mortgage assistance for homeowners in several states.

Kentucky, Indiana together with the District of Columbia and 16 other states who are having difficulties in paying their home mortgage will share $7.6 billion from President Obama’s program “Hardest Hit Funds.” This program aims to give assistance to states with high unemployment rates and declining housing market.

After paying for administrative expenses, $134 million will be used by Kentucky homeowners while $183 million is allocated for Hoosiers. Qualified citizens of Kentucky will get up to a maximum of $20,000 while Hoosiers up to $18,000. In the coming months, the assistance will be extended to the citizens of Indiana. About 6,250 to 13,000 families in Kentucky and 16,257 in Indiana will be given assistance.

According to Kentucky Housing Corp’s CEO Rick McQuady this program will assist Kentucky’s workers while they are waiting for a stable employment. The Indiana Housing & Community Development Authority and Kentucky Housing Corp. will pay for the mortgage of citizens who qualify in the program.

This program is aimed at helping people who cannot cope up with their monthly mortgage payments because of involuntary job loss or drop in income. Many of these individuals now have to deal with credit repair to improve thier scores. Borrowers who are seeking assistance are not allowed to save more than six months worth of house payments. Exemption for this condition is in the retirement accounts.

The provided assistance will be in the form of a loan that is not required to be paid for as long as the borrower stays in the same home for five years in Kentucky and for 10 years in Indiana. Different rules are given by each state depending on its officials.

Kentucky homeowners can claim up to $7,500 worth to pay for late mortgage and fees. Plus, the agencies of the state will pay their mortgage in full for one year or until the amount of $12,500 is spent. The total cost that the government will cover is $20,000. On the other hand, Indiana homeowners will receive a total of $18,000 worth of assistance for a maximum of 18 months. However, this is extended only to the “hardest hit” counties like Crawford, Orange and Scott.

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