Instead, North Carolina, Ohio, Oregon, Rhode Island, and South Carolina will divvy up $600M in aid. The first round of states receiving aid, which were announced in June, were Arizona, Florida, California, Michigan, and Nevada.
States receiving aid will use it to make mortgage payments for unemployed homeowners for up to a year while they search for work. The states can also provide incentives for lenders to lower balances on underwater loans.
Hey, but what about us? Sometimes the old saying that “the Lord helps those who help themselves” is very apt. Chapter 13 of the bankruptcy code provides something of a do-it-yourself mortgage rescue program, at least for homeowners who still have a stream of regular income each month. In Chapter 13, arrearages on a first mortgage can be paid off over five years, and in many cases second mortgages or home equity lines can be entirely eliminated. There are, of course, many details, so if you’d like to find out about them, please give me a call.
By Doug Beaton