Arizona's unemployment rate is preventing struggling homeowners from receiving help from the federal government's latest foreclosure-prevention program.
Last week, the U.S. Treasury Department named the states that will divvy up $2 billion in additional funding to specifically help homeowners facing foreclosure due to unemployment. Arizona wasn't on the list, a disappointment to many of the state's homeowners and housing advocates.
Arizona is already receiving $125.1 million from the federal government's Hardest Hit Housing Markets fund, which is the same federal program administering this latest round of aid. Arizona is one five states - along with California, Florida, Nevada and Michigan - sharing $1.5 billion through a program for areas with the biggest drop in home prices. All five states are posting among the highest foreclosure rates in the nation.
California, Florida, Nevada and Michigan also qualified for a piece of the $2 billion in new funding to help unemployed homeowners. Those states were among 17 and the Washington, D.C., area selected.
The Treasury Department said the states to receive the latest round of foreclosure-prevention funding all had unemployment rates at or above the national average during the past 12 months.
In June, Arizona's unemployment rate was 9.6 percent, according to the Bureau of Labor Statistics. Nevada has the highest unemployment rate in the country: 14.2 percent. Michigan is second at 13.2 percent, and then comes California at 12.3 percent. Florida is in the top 10 with an unemployment rate of 11.4 percent.
The U.S. average rate for unemployment is 9.5 percent.
Arizona might be eligible for another round of funding to help homeowners facing foreclosure. The U.S. Department of Housing and Urban Development is working on a $1 billion Emergency Homeowners Loan Program. Plans for it include providing zero interest, deferred-payment bridge loans of up to $50,000 for homeowners who have had their incomes cut due to job loss, underemployment or medical conditions.
Next month, Arizona's Housing Department plans to launch foreclosure-aid programs funded by the $125.1 million it was awarded earlier this year.
Read more: http://www.azcentral.com/business/realestate/articles/2010/08/18/20100818biz-catherine0818.html#ixzz0x6CkleLi
Arizona's jobless rate deters extra foreclosure aid
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