The Obama administration is providing $3 billion to unemployed homeowners facing foreclosure in the nation's toughest
job markets.
The Treasury Department said Wednesday it will send $2 billion to 17 states that have unemployment rates higher than the
national average for a year. Indiana is due to receive $83 million. States will use the money for programs to aid unemployed
homeowners.
Another $1 billion will go to a new program being run by the Department of Housing and Urban Development that will provide
homeowners with emergency zero-interest rate loans of up to $50,000 for up to two years.
The administration was required to launch the HUD emergency loan program by the financial regulatory bill signed by President
Barack Obama last month.
The Treasury is using money from the $700 billion Wall Street bailout to pay its share of the program. Officials said they
won't know until next month how many people are likely to be helped.
California will get the largest share of money for the Treasury program, at $476 million. Florida is in line for nearly $239
million. Illinois will receive $166 million, Ohio will receive $149 million and Michigan will get $129 million.
The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent
in the problem. More than 40 percent, or about 530,000 homeowners, have fallen out of the administration's main effort
to assist those facing foreclosure.
That program, known as Making Home Affordable, provides lenders with incentives to reduce mortgage payments. So far, it has
provided permanent help to about 390,000 homeowners, or 30 percent of the 1.3 million who have enrolled since March 2009.
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