owners who are unable to make mortgage payments because of unemployment, according to the Ohio Housing Finance Agency.
In February, the Obama administration announced a $1.5 billion foreclosure assistance plan for Nevada, Florida, Michigan, Arizona and California, where owners have seen their property values plummet 20 percent or more.
Sens. Sherrod Brown, D-Ohio, and George Voinovich, R-Ohio, both urged the Obama administration to expand the program to include states like Ohio, which didn’t meet the earlier criteria.
“Ohio is at the forefront of the foreclosure crisis and should have all the resources necessary to rebuild our communities,” Brown said in a statement.
Tina Koumoutsos, executive director of the Neighborhood Housing Partnership of Greater Springfield, said homeowners in both Clark and Champaign counties will benefit from the program.
Both counties have been hit hard by the economy, leaving homeowners who are unemployed or underemployed with few options.
“It’s very difficult to have a meaningful dialogue with a lender if someone just doesn’t have the resources to make a payment,” Koumoutsos said.
She stressed the program will not take effect immediately. Contracts will have to be set in place and training will be needed to administer the program.
At the beginning of the program, Clark County could receive assistance for as many as 126 homes, while Champaign County could receive assistance for 37 homes.
Borrowers will not directly receive assistance, said OHFA Executive Director Doug Garver. Instead, the counseling agencies will direct the funds to the lenders or mortgage-servicing agencies.
OHFA plans to launch the program Sept. 27. It will be funded through money from the Troubled Asset Relief Program.
The announcement was welcome news to Jim McCarthy, president and chief executive of the Miami Valley Fair Housing Center . “It means we can focus on doing the work for the people who need it,” he said.
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