Thaindian News

LAS VEGAS (BNO NEWS) – President Barack Obama with Senate Majority Leader Harry Reid announced a $1.5 billion funding in order to help families from five states that have been hit by the housing crisis.

The funding will be managed by housing financing agencies (HFA) in California, Florida, Nevada, Michigan and Arizona, in which the hardest-hit housing markets are. The average price for all homes in these five states has fallen more than 20% from the peak. The decline of prices along with the unemployment has caused that many working and middle class families are facing serious financial challenges, sometimes surpassing the family’s resources.

“During these difficult economic times, we will work to help responsible homeowners stay in their homes and stabilize the housing market so home values can rise. This program will allow housing finance agencies in the places hardest-hit by the housing crisis find innovative ways to help homeowners stay afloat, and empower local agencies that know these communities best,” President Obama said.

The housing financing agencies will determine the priorities facing their local markets. They were selected based on their demonstrated ability to address challenges

The HFAs will work through programs designed specifically to address this situation. These will cover the most important challenges such as measures for unemployed homeowners, programs to assist borrowers owing more than their home’s current value, programs to address challenges from second mortgages and other programs encouraging sustainable and affordable home ownership.