An influx of money for the states of California, Arizona, Nevada, Florida and Michigan will be put into the housing agencies in order to help those states from the outrageous foreclosure issues they are having. President Obama is going to announce a 1.5 billion dollar plan at a press conference in Las Vegas today.

The aid will help those that are in foreclosure, upside down on their homes and for those that are unemployed and unable to make their house payments. The funding will come from the TARP funds that were used to bail out the big banks. Presenting this with the President will be Senate Majority Leader Harry Reid who represents the state of Nevada which is in the worst condition of the five states.

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Although the 1.5 billion can help many people, the Obama administration is saying that this is just one arrow in their quiver of housing aid and is a part of the struggling Home Affordable Modification Program which has done very little to aid those in need over the past year.

This announcement will also shift the responsibility to the state housing agencies of coming up with actual solutions for their particular state. They could develop programs that assist the unemployed until they find jobs, help the underwater negotiate principal reductions with their loan servicers and pay incentives to second-lien holders to get them to agree to loan modifications, according to the White House.

If implemented, this could give the states the opportunity to get homeowners’ loans modified and offer help to the unemployed. The programs that the state agencies come up with will still have to be approved by the Treasury Department.

This entry was posted on Friday, February 19th, 2010 at 9:05 am and is filed under US Business News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.