Expansion of Foreclosure Prevention Program

For Immediate Release   

February 1, 2012

Homeowners Facing Foreclosure May Qualify for up to $35,000 in Mortgage Assistance.

CLEVELAND, OH – Empowering and Strengthening Ohio’s People wants to spread the word about changes to the Ohio foreclosure prevention program that could help more struggling homeowners stay in their homes by providing up to $35,000 in mortgage assistance.

     Today the Ohio Housing Finance Agency announced the expansion of Save the Dream Ohio.  The program is designed to help homeowners experiencing a financial hardship like unemployment or other loss of income.  New rules are intended to help more people qualify for the program and increase the amount of help they can receive. Changes include:

  • Increase the amount of assistance from $25,000 to $35,000.
  • Increase in annual household income allowed.
  • Household liquid assets no longer a factor in program eligibility.

     Save the Dream provides six ways for homeowners to get help:

  • Mortgage Payment Assistance – Up to 18 months of full mortgage payments or maximum benefit of $22,000.
  • Rescue Payment Assistance – Up to $25,000 to bring a homeowner current on their delinquent mortgage.
  • Modification with Contribution Assistance – Up to $25,000 to reduce a delinquent or principal balance in order to help the homeowner qualify for a mortgage modification.
  • Homeowner Retention Assistance – Up to $25,000 to reduce or eliminate a delinquent second mortgage, property taxes or condo association dues.
  • Lien Elimination – Up to $25,000 to a servicer to eliminate a first mortgage lien.
  • Transition Assistance – Up to $7,500 for homeowner relocation in the event of a short sale or deed in lieu of foreclosure.

     Of the $570 million dollars that Ohio was awarded from the U.S. Treasury Department’s Hardest Hit Fund so far $105 million has been used to assist Ohio homeowners.  ESOP foreclosure prevention advocates are hopeful that the new program guidelines will help home struggling homeowners get the help they need to stay in their homes.