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Oregon Starts Its Own Mortgage Assistance Program
Oregon Starts Its Own Mortgage Assistance Program
Oregon has announced the distribution of its financial assistance to homeowners in the state who are facing possible foreclosure. The Mortgage Payment Assistance (MPA) program was set to start assessing applications and granting aids beginning Friday, December 10.
Troubled homeowners in the state are advised to fill up application forms that are posted online. A special and secure software would be used to randomly select eligible applicants who are qualified for the program. The chosen applicants would be immediately notified after the closing date, which is on January 14 next year.
Contrary to beliefs, the program is not on a first-come, first served basis. Eligible homeowners who have filed applications within the period would be given the opportunity to obtain assistance for their mortgage payments. Requirements are set because the program may not be able to cover every troubled homeowner due to limitations in resources.
MPA would be the first in four programs that would be launched through the Oregon Homeownership Stabilization Initiative. Such efforts are aimed at helping reduce and prevent foreclosures across the state. Oregon is considered as among the hardest hit states of the housing downturn and the financial crisis, because of its high unemployment rate in 2009.
The foreclosure aid programs in the state would be funded by the federal government. The US Treasury has provided a $220 million budget to the state for the implementation of statewide foreclosure prevention programs. Oregon is currently working with several organizations to help and reach out to troubled homeowners who are at risk of foreclosures.
The housing finance agency of the state, Oregon Housing and Community Services, was created to plan and roll out the four mentioned programs that are all aimed at helping households that are suffering from unemployment. The programs are also targeting homeowners who are suffering from underemployment due to the impact of the recent economic recession.
MPA is the biggest program of the four. It has an initial fund allocation of $100 million. It aims to distribute mortgage assistance to as many as 5,000 households. The maximum assistance amount to be distributed to each eligible applicant is about $20,000, which could cover up to a year of mortgage payment.
After the software selects an applicant, he would be required to attend a meeting with an intake advisor. The meeting would help make sure all required documents would be submitted. Homeowners without access to the Internet could proceed to the nearest and local intake agency in their counties.
For more news about foreclosure, visit ForeclosureConnections.com.