Sept. program aims to help struggling homeowners
Updated: Thursday, 24 Jun 2010, 6:57 PM MDT
Published : Thursday, 24 Jun 2010, 6:57 PM MDT
PHOENIX - Thousands of Arizona homeowners on the brink of foreclosure could be getting a new lifeline. $125 million in stimulus money will soon be available to help people stay in their homes.
Arizona has the second highest rate of foreclosures in the nation, and that's why the federal government is focusing on stopping the flood of foreclosures here.
The idea is to reduce the amount people actually owe on their mortgage -- so they can afford to stay in their home and make payments. And struggling homeowners will soon get some relief.
"The goal of the program is to keep 4,000-plus homeowners in their homes," says Reginald Givens with Arizona Dept. of Housing.
The new program, called "Save my Home AZ," will only work if mortgage lenders agree to reduce the amount of principal people owe on their homes, says Givens.
Stimulus money will then be used to match whatever the lender agrees to forgive -- up to $50,000.
Not everyone who is underwater will be eligible.
"You've heard a lot recently of people used their homes like an ATM -- then that mortgage would be ineligible," he says.
Supporters say the plan will also keep vacant homes from going to garbage once owners walk away.
Patricia Duarte with Neighborhood Housing Services of Phoenix expects the money to go fast.
"It's a great program because it ensures that people stay in their home instead of walking away because the thought of being underwater is something they can't stand."
The Save My Home AZ program doesn't start until September. Four other states are also getting help.
To find out if you qualify: Call Arizona Department of Housing at 1-877-448-1211 or go to www.housingaz.com
