Aid for Those Forced into Foreclosure
Foreclosure is a big problem. In July, the government responded to this problem by implementing a billion dollar program to help. Louisiana as a state is set to receive $16.7 million from this program. Of course, not everyone that forecloses is going to receive assistance.
So, who does this program help?
The program is designed to help a specific group of homeowners who may be near foreclosure. Those who have lost earnings due to a lack of employment or a medical condition are eligible to receive support.
When does it start?
According to HUD (Department of Housing and Urban Development), the program will begin taking new applicants by the end of 2010 and expects that up to 2 years of help may be offered to those who face foreclosure. With many large banks putting a halt on new foreclosures until 2011, it is a timely influx for financial assistance.
Louisiana is just one of 30 states involved in this program. Each state was selected because of the lack of aid for homeowners who faced foreclosure. Before this program, these states had no federal support for foreclosures. I think this is a good sign for both homeowners and those who wish to buy soon. It will be some time, however, until we find out what effect the program actually has on foreclosures.