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SALEM -- Oregon will be launching four new foreclosure prevention programs made possible with $88 million in new funding from the Obama administration.
Only five states were selected to split the $600 million earmarked for helping unemployed homeowners avoid foreclosure. The other states are North Carolina, Ohio, Rhode Island and South Carolina.
More: See how other states will spend their money
Oregon’s money will be used to help approximately 6,000 struggling homeowners across the state. A detailed plan outlining four specific programs was already submitted to the U.S. Treasury Dept. and approved.
The four programs were designed to help homeowners modify their existing loans, make mortgage payments when they have no money to do so, or move into a more affordable home, if necessary.
More: Specific details about assistance programs
"We are very excited to have the opportunity to help people throughout the state remain in their homes," said Victor Merced, director of Oregon Housing and Community Services. "We will spend the next few months partnering with lenders to ensure these programs succeed."
Oregon’s initiative dedicates 80 percent of the resources to counties most dramatically affected by the recession. Those counties are: Clackamas, Columbia, Coos, Crook, Curry, Deschutes, Douglas, Grant, Harney, Jackson, Jefferson, Josephine, Klamath, Lake, Lane, Linn, Marion, Multnomah, Wallowa and Yamhill. The remaining 16 counties will receive the balance of the foreclosure prevention dollars.
OHCS will begin implementing the programs by the end of the year. Oregonians interested in reading the full proposal or applying for aid can visit the Oregon Homeowner Help Web site or call 1-800-SAFE NET. (1-800-723-3638)
The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis, but has made only a small dent in the problem. The administration's main effort, which provides lenders with incentives to reduce mortgage payments, has enrolled about 390,000 homeowners. About 530,000 have fallen out of the program.
