Federal Report Shows Ohio Failed to Help the Most Distressed Homeowners in Avoiding Foreclosure

by San Antonio Attorney

Michigan and Ohio have been hit hard by the foreclosure crisis.  In order to facilitate them and other affected states, the Hardest Hit Fund was set up by the federal government.  The fund is derived from a recession-era fund intended to keeping financial institutions, the automobile industry and the United States’ economy from rolling.

However, a recent update from a national inspector general says that Michigan and Ohio particularly were unable to provide that funding to the homeowners who are most likely to lose their residences — those who made well below $30,000 annually.

In particular, this was experienced by distressed homeowners in areas where General Motors was streamlining or shuttering factories, such as Detroit, Dayton, Cleveland and other parts of Michigan.  Many people who got rejected from the financing program in those communities had earnings lower than $30,000.

Ohio administrators disagree with the certain parts of the inspector general’s report.  According to them, 88% of GM workers who sought to avail the program were granted.

The report is founded on statistics of how many individuals applying for help and their earnings, and how many got turned down or accepted.  It does not include any assessment about the reasons of rejection, like too much debt or other possible issues.

The report said the inspector tried to obtain such information, but the housing agencies could not give answers without checking the applications individually.  Regardless if there were legitimate reasons for some rejections report recommends the following:

  • The states should better monitor reasons for rejections so the information becomes available
  • The states should do more to ensure that the homeowners who are hardest-hit receive assistance.

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