The Buckeye state got the largest share of $600 million from the Obama administration for five states looking to help homeowners struggling to find jobs. Under the Ohio Housing Finance Agency's plan, out-of-work Ohioans can apply for help getting partial mortgage payments while they go through job training or look for a job. Other funds will be used to help homeowners catch up on payments or as an incentive to help borrowers cut deals with their loan servicers. Money will also go to help some borrowers get out of their mortgages through short sales or deed-in-lieus.
Nonprofits providing free foreclosure counseling have long lobbied hard for some of the cash, arguing that without funds they would have to close.
Bill Faith of the housing advocacy group COHHIO says HUD approved counselors will be the point of contact for consumers hoping to apply for the state program and reimbursed for their time.
Bill Faith: So that's a big victory for homeowners I think because they are going to receive a higher quality level of assistance. But it is temporary and the need to find for ongoing way to support foreclosure prevention counseling is still an issue.
The state government estimates about 18,500 Ohioans will be helped. Ohio's hardest hit fund will launch September 27.