We look towards our government to protect us from the evils of chaos. I mean, that’s why man created government to begin with- to organize people and to put a few rules and guidelines for us to follow and people to enforce those rules right? But what happens when we are in need for the government to save us. Well, some States are stepping up to the plate.

Many people right now are facing unemployment, and when you are unemployed that financial hardship trickles down to other parts of your life, hence the foreclosure rate being so high. But right now some states are taking notice of these issues and making it easier for upstanding citizens that are temporarily unemployed to keep their homes while they figure out how to make ends meet. Take Pennsylvania for example. Their Housing Finance Agency has set up an emergency mortgage assistance program. This agency has given homeowners an up to $60,000 loan to cover their mortgage payments and real estate taxes while they are momentarily unemployed. This program was created in 1983 to help Pennsylvania residents that have fallen on hard times whether from unemployment, divorce, or medical problems.

This program has managed to help over 43,000 homeowners and boasts an 80% success rate in helping everyday citizens keep their homes and their credit out of foreclosure. Here’s the short explanation on how this program operates; when a homeowner falls behind on payments they receive a foreclosure notice from their lender along with a list of housing counselors that may be able to help them, the counselor then collects the borrowers financial information and passes it on to the governmental housing agency that runs several foreclosure prevention plans.

Lately this program has been brought out into the spotlight in response to President Obama’s request for a plan to assist the American people prevent foreclosure. In fact, in late February 2010 President Obama announced a $1.5 billion initiative that gives money to the States that have been hardest hit by the mortgage crisis: Arizona, California, Florida, Michigan, and Nevada. This program calls for governments to assist those who are jobless and those whose homes are worth far less than what the homeowner owes. Since this program has been announced, officials from Nevada, California, and Florida have already been in touch with officials in Pennsylvania to learn how to practically duplicate their program, in fact similar programs are alive and well in Delaware, North Carolina, and Massachusetts.

This program works mainly due to careful scrutiny of the applicant’s financial records, which are reviewed annually. For instance, those who have steep credit card debts are not likely to get the thumbs up. This program is built for the average hard working citizen that is down on their luck and needs a helping hand to get back on their feet, not the neighborhood freeloader looking for a handout. These agencies only help those who are able to repay the loan and are working towards paying off their mortgage.

This program has the promise of helping those hardworking Americans in need, now isn’t that what government is for?

Author Bio: “Your” Money Matters, by Carl Hampton From the Author of “From Credit Despair To Credit Millionaire.” Http://www.CarlHampton.com

Category: Finances
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