The Treasury Department announced that five of the states hit hardest by the housing crisis will soon start to receive funds from a special $1.5 billion fund intended to head off more foreclosures.
Those states include California, Arizona, Florida, Michigan and Nevada and will get the money from a program called the "Hardest Hit Fund" for foreclosure mitigation that was announced earlier this year by President Obama. Each of these states has had an average price decline of 20 percent or more.
Treasury officials stated that each of these five states have submitted and had their proposals approved and are now ready to start receiving funds. Sadly, it could be weeks or even months before the money is distributed.
The Break Down:
Nevada: $102.8 million
Arizona: $125.1 million
Michigan: $154.5 million
Florida: $418 million
California: $699.6 million
The $1.5 billion fund was pulled from the already existing $50 billion program called Home Affordable Modification Program which was itself a part of the $700 billion bank rescue package approved by Congress back in late 2008.
At this time it is unsure how many homeowners will be helped by the Hardest Hit Fund, but the first estimate by the Treasury Department said it could be up to 90,000.
The Treasury Department also stated that a another five states would likely be approved in coming weeks including North Carolina, Ohio, Oregon, Rhode Island and South Carolina.