Ohio to get funds to curb foreclosures

Staff report

The state will receive $172 million in federal funds to help homeowners prevent foreclosure, the U.S. Treasury Department announced Wednesday.

Ohio was one of five states to receive funding from the second round of funding from the Hardest Hit Fund program, which directs leftover money from the Troubled Asset Relief Program to state housing-finance agencies for foreclosure- prevention assistance.

The second round allocated $600 million to states with a large share of people living in counties with annual unemployment rates of at least 12 percent.

Ohio received the second-largest sum, after North Carolina. Oregon, Rhode Island and South Carolina also received funding.

The Ohio Housing Finance Agency will use the funds to assist unemployed and underemployed homeowners who have been unable to qualify for other loan-modification and foreclosure-prevention programs.

The comprehensive program will include rescue payments, partial mortgage payments, loan-modification assistance with principal reductions and transitional help.

The plan will launch Sept. 27. Borrowers in need of immediate assistance should visit www.savethedream.ohio.gov or call the state foreclosure- prevention counseling hot line at 888-404-4674.