Most foreclosures in the US are happening in a handful of hard hit states. To address this issue the Obama administration recently signed on on a $1.5 billion plan targeted at and administered by some of those hard hit states. Here are some excepts from a recent HousingWire article on the topic:
The aid, granted through the Hardest Hit Fund announced in February, supports local initiatives to aid underwater mortgage borrowers in states where average housing prices declined 20% or more from peak levels. The states include Arizona, California, Florida, Michigan and Nevada.
“While we’ve made important progress stabilizing the housing market and keeping responsible families in their homes, the Obama Administration will continue to do everything it can to help those who are struggling the most during this difficult time,” said Treasury assistant secretary for financial stability Herbert Allison, Jr., in a statement. “Today marks an important milestone for delivering relief to homeowners through the Hardest Hit Fund program.”