Unemployed Homeowner Avoid Foreclosure with Restoring Stability

Restoring Stability, a program announced by the State of Ohio for struggling homeowners

, is specifically designed for avoiding foreclosure. U.S. Department of Treasury has awarded Ohio $320 million from their funds for the Hardest-Hit Housing Markets. This program is administered by the Ohio Housing Finance Agency. Restoring Stability: A Save the Dream Ohio Initiative, will be helping around 26,000 families having high risk of foreclosure or default. This is extremely beneficial for unemployed homeowners who are deprived of the other existing foreclosure prevention programs.

Therefore those who were planning to sell off their homes and condos in Columbus can now reconsider their decision. And those who have already listed their property can consult with their listing agent or Ohio real estate agents and verify whether or not they are eligible for the program. The Ohio Housing Finance Agency had designed 4 programs for the homeowners whose income has been temporarily or permanently reduced during the recession.

Rescue Payment Assistance Program provides a payment to the bank/ mortgage lender and helps the homeowners to become current on their mortgage. And thus avoid the risk of being at foreclosure. Therefore a homeowner who is facing financial hardship and have missed mortgage payments can opt for this program rather than selling off his / her homes and condos in Columbus. This payment usually covers the principal amount, interest, taxes, fees and homeowners insurance. However the homeowner must prove their capacity of making future mortgage payments at least for six months to be eligible for this program.

Partial Mortgage Payment Assistance Program is designed for the unemployed homeowners. Payment assistance is provided for up to 15 months and within this time the unemployed homeowners need to find a job or at least participate in job training. It was observed that many were forced to sell off their homes and condos in Columbus as they lost their job during the recession and was not able to repay their mortgage. In the past unemployed homeowners were not eligible for loan modifications, but the State of Ohio has taken a revolutionary step and has extended a helping hand towards the unemployed homeowners through this program. The beneficiary of this program can make affordable monthly payments and the rest of the amount is covered by Restoring Stability. However the monthly payments made by the borrower must not be less than 25% of their present total monthly payment.

Modification Assistance with Principal Reduction Program provides an incentive payment to trim down the mortgage principal balance. In the past many homeowners had sold their homes and condos in Columbus as they had severe negative equity on their property and were not able to participate in the existing loan modification programs. However this program helps to reduce the mortgage principal by providing a payment incentive to the mortgage servicer so that the borrower can achieve a loan modification.

Finally Transition Assistance Program is an incentive payment made to the homeowners and mortgage lender to help with short sale or deed-in-lieu agreements. This is an ideal program for homeowners who have no option other than selling their homes and condos in Columbus to exit their homes gracefully. It is an alternative to foreclosure and can reduce the negative impact on the borrower's credit rating.

Unemployed Homeowner Avoid Foreclosure with Restoring Stability

By: Rebekah Whitman

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