|FOR IMMEDIATE RELEASE
Tuesday, September 27, 2011
|Media Contact: Arlyne Alston
State of Ohio’s Foreclosure Prevention Program, Restoring Stability, Celebrates One Year Anniversary
COLUMBUS — The Ohio Housing Finance Agency (OHFA) is celebrating the one-year anniversary today of its statewide foreclosure prevention program, Restoring Stability: A Save the Dream Ohio Initiative. Since the implementation of the program on September 27, 2010, the Agency has assisted more than 2,900 Ohio homeowners at risk of mortgage loan default or foreclosure. Of the 2,900 homeowners, 73 percent are currently unemployed and unable to qualify for most loan modification and foreclosure prevention programs.
To implement the program, OHFA received $570.4 million from the U.S. Department of Treasury’s Hardest Hit Fund (HHF). Ohio was one of 18 states plus the District of Columbia that received a portion of $7.6 billion in federal assistance through HHF, established to provide financial assistance to families in states most impacted by the downturn of the housing market.
"OHFA was among the first to open their program statewide and has been a leader in many ways among the Hardest Hit Fund states," said OHFA Executive Director Doug Garver. "The Agency is helping about 500 borrowers each month with keeping the homes they have worked hard to obtain. I am proud of the progress the program is making and feel it is well on its way to assisting an estimated 53,000 struggling families."
OHFA designed the Restoring Stability program with Save the Dream Ohio partners to help homeowners with financial hardships such as unemployment, reduced wages or hours, death of a spouse, increased medical expenses or divorce. There are four options for homeowners experiencing a hardship or loss of income including:
- Rescue Payment Assistance - Provides a payment to a participating homeowner's mortgage servicer to help bring the homeowner current on his or her delinquent mortgage.
- Partial Mortgage Payment Assistance - Provides up to 15 months of assistance for unemployed homeowners while they search for a job or participate in job training. Press Release
- Modification Assistance with Principal Reduction - Provides an incentive payment matched by an investor to reduce the mortgage principal balance so a loan modification may be possible.
- Transitional Assistance - Provides an incentive payment to the mortgage lender and homeowner with short sale or deed-in-lieu of foreclosure to help homeowners exit their homes gracefully.
To date, 2,913 homeowners received assistance totaling $23,362,921. Of these homeowners, 2,491 received aid through Rescue Payment Assistance, 1,898 received aid through Partial Mortgage Payment Assistance, 35 received aid through Lien Cancellation and two received aid through Transition Assistance.
Homeowners may combine programs up to the maximum household benefit amount of $15,000. More than 1,500 homeowners have received Rescue Payment Assistance in conjunction with Partial Mortgage Payment Assistance. All payments are made through OHFA’s fiscal agent, Ohio Homeownership Assistance LLC, to mortgage servicers on behalf of eligible homeowners.
For more information on the Restoring Stability program, visit the Save the Dream Ohio website at www.savethedream.ohio.gov or call the toll-free hotline at 888-404-4674.
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About the Ohio Housing Finance Agency
OHFA is a self-supporting quasi-public agency governed by an eleven-member board. The Agency uses federal and state resources to provide housing opportunities for families and individuals through programs designed to develop, preserve and sustain affordable housing throughout the State of Ohio. OHFA is also an active partner in the interagency team which coordinates the Save the Dream Ohio initiative designed to stop preventable foreclosures.