South Carolina Slated for an Additional $58 Million in Federal “Hardest Hit” Housing Funds

South Carolina joins 16 other states and the District of Columba in sharing a total of $2 billion in additional federal assistance to help unemployed homeowners pay their mortgages as they seek work. 

 

The states were selected for the additional funding due to high, sustained unemployment, with rates at or above the national average, over the past 12 months (through June 2010). This include nine of the original HFA Hardest Hit Fund states (California, Florida, Michigan, Nevada, North Carolina, Ohio, Oregon, Rhode Island and South Carolina), who can use the funds for an existing unemployment bridge program or implement the model provided, as well as DC, Illinois, Alabama, Tennessee, Kentucky, Mississippi, Georgia, Indiana and New Jersey.

 

SC Housing officials expect to begin taking applications and distributing these funds to qualified, responsible borrowers in early October.  Responsible borrowers are defined in the SC proposal as homeowners who find themselves in default or foreclosure due to circumstances beyond their control.  This includes job loss, underemployment (job loss followed by reemployment at substantially lower income), death of a spouse, divorce or extensive medical expenses.

 

Borrowers who have demonstrated poor or irresponsible credit and debt management, mismanagement of personal budgeting, or stripping of equity from their home for non-essential purposes will not be eligible for assistance.

 

South Carolina’s proposal, along with additional information, background and resources are now posted on www.SCMortgageHelp.com and will be updated frequently.

 

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