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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Tag: Foreclosure

Federal Funding for Housing Aid and Homelessness Prevention

  • Feds offer aid to renters as well as homeowners, By Kathleen Pender, August 15, 2010, San Francisco Chronicle: “Congress and the Obama administration have committed tens of billions of dollars to keep homeowners in their homes. Renters, who make up about one-third of households nationwide – and close to two-thirds in San Francisco and other large cities – wish the government would do a little more for them. For homeowners, Obama’s Making Home Affordable program obtained $50 billion from the Troubled Assets Relief Program plus $25 billion, mainly from Fannie Mae and Freddie Mac. Originally this money was supposed to help homeowners refinance or modify subprime mortgages (which qualified as troubled assets). More recently it has been used to help those who can’t pay their mortgage because they are unemployed. Last week, the Treasury said it is using $2 billion to help unemployed homeowners in 17 states, including California…”
  • Habitat for Humanity uses federal funds to rehab metro Detroit homes, By Tammy Stables Battaglia, August 16, 2010, Detroit Free Press: “Habitat for Humanity, an agency known for building new houses, is using funds from the federal Neighborhood Stabilization Program to rehab old ones. The program, created in 2008 under President George W. Bush, provides communities and organizations funding to redevelop residential properties. That money must be allocated to projects by Sept. 19. In 2006, seven of 52 Habitat homes in Michigan were rehabs. The organization rehabbed 104 of its 221 homes during the first three months of this year, and there are dozens more projects to be completed, Habitat officials said…”
  • Red tape slows North Texas agencies in disseminating federal funds to fight homelessness, By Neena Satija, August 15, 2010, Dallas Morning News: “Getting federal stimulus money to those in need had a slow start in North Texas, with understaffed agencies bogged down in paperwork. Now that the initiative is in full swing – the job has only gotten harder. North Texas received $25 million for the Homelessness Prevention and Rapid Rehousing program in September. As of March, it had only spent $2 million. Now, it has spent $7 million and helped 7,800 households. But a faster flow of dollars means a bigger maze of red tape…”

Unemployment and Home Foreclosures

  • $3 billion allocated for jobless homeowners, By Julia Love, August 12, 2010, Los Angeles Times: “The Obama administration announced Wednesday that as part of an effort to stabilize housing markets it will send a $3-billion lifeline to jobless homeowners struggling to make mortgage payments. Tapping into resources from the $700-billion Wall Street bailout, the Treasury Department will add $2 billion to its Hardest Hit Fund, assisting the 17 states that have unemployment rates higher than the national average, along with Washington, D.C. California will receive $476 million, the most of any state…”
  • U.S. plans more aid for jobless homeowners, By David Streitfeld, August 11, 2010, New York Times: “In an acknowledgment that the foreclosure crisis is far from over, the Obama administration on Wednesday pumped $3 billion into programs intended to stop the unemployed from losing their homes. The housing market, which usually helps lead the country out of a recession, is this time helping hold the recovery back. Interest rates are at record lows, but too few can afford to buy or refinance. Unemployed homeowners who live in communities where values have fallen sharply are often unable to sell. Their foreclosures weaken neighborhoods and create a vicious circle by further undermining the market…”

Unemployment and Home Foreclosures

Oregon gets federal money to help unemployed avert foreclosures, By Charles Pope, August 4, 2010, The Oregonian: “The Obama administration released $600 million Wednesday to help unemployed homeowners in Oregon and four other states avoid foreclosure. Oregon, where one in every 76 homes is facing foreclosure, qualifies for $88 million.The money will be used to help distressed homeowners. The money will be available to state housing authorities in Oregon, Ohio, South Carolina, Rhode Island and North Carolina “to support local initiatives to assist struggling homeowners in these five states that have high percentages of their population living in areas of economic distress due to unemployment,” the Treasury Department said…”