R.I. to receive nearly $10M in foreclosure prevention funding

CRANSTON – Nearly $10 million in foreclosure prevention funding is coming to Rhode Island from the Hardest Hit Fund at the U.S. Treasury Department, U.S. Sen. Jack F. Reed said Friday.
Reed wrote to U.S. Treasury Secretary Jacob Lew in January, asking for more Hardest Hit Fund resources for Rhode Island, citing the continued need for foreclosure prevention assistance.

According to information from Reed’s office, the Hardest Hit Fund is a flexible source of federal aid that has been used in Rhode Island to help protect neighborhood home values, help unemployed homeowners remain in their homes while they search for new employment, and for other programs to encourage sustainable and affordable homeownership.
Reed said he is pleased that Rhode Island will receive the funds, which total $9.68 million.

“These funds will help stabilize the housing market while keeping more families in their homes and minimize further foreclosures that can really burden neighborhoods. This additional federal funding is good news for Rhode Island and will be a big help for homeowners and communities still looking to get back on their feet,” Reed said in a statement.

According to the Mortgage Bankers Association National Delinquency Survey for third quarter 2015, Rhode Island was among the top 10 states with the highest percentage of loans in foreclosure. Rhode Island’s percentage of loans in foreclosure is more than 36 percent higher than the national average, and its serious delinquency rate is more than 38 percent above the national average, a news release from Reed’s office said.

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Rhode Island, to date, has received $79 million in HHF dollars to help prevent foreclosures and stabilize the housing market. Since the fund launched here in December 2010, more than 5,300 Rhode Island homeowners have sought HHF counseling, and more than 3,300 homeowners received assistance from the program, according to Rhode Island Housing data.
Rhode Island also has the opportunity to apply for $39 million in additional HHF resources if the state demonstrates need and the ability to quickly deploy these funds effectively, the release stated.

Rhode Islanders interested in learning more about who qualifies for assistance from the HHF program and how to apply should visit the state’s HHF program website.

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