White House Announces $3 Billion To Help Unemployed Homeowners

The White House announced Wednesday that the administration will allocate $3 billion for foreclosure prevention programs aimed at unemployed homeowners.

“The U.S. Department of the Treasury will make $2 billion of additional assistance available for HFA programs for homeowners struggling to make their mortgage payments due to unemployment,” according to a statement put out by the White House late Wednesday morning.

The statement goes on to say, “The U.S. Department of Housing and Urban Development (HUD) will soon launch a complementary $1 billion Emergency Homeowners Loan Program to provide assistance – for up to 24 months – to homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition.”

The $3 billion will come from the Hardest Hit Fund, a safety-net set up in February for states particularly affected by the economic downturn.