Washington, DC – September 27, 2010 – (RealEstateRama) — Congressman Dennis Kucinich (D-OH) today announced that applications from Ohio homeowners are now being accepted for funds made available through the Administration’s $172 million Hardest Hit Fund for Ohio.
“Today, our hard work begins to pay off. Out of work and struggling homeowners can finally apply for desperately needed help. I heard from my constituents and home foreclosure experts about the need, and together we made our case to the Administration,” said Kucinich.
The Hardest Hit Program is estimated to help 26,000 Ohio homeowners. Money made available can be used to help with late payments, reduce a homeowner’s loan balance or help a homeowner extricate themselves from a bad loan.
“Northeast Ohio has been hit hard over the years and we have always managed to weather the storm. If a homeowner thinks they are eligible, they should immediately call my office at (216) 228-8850,” added Kucinich.
Congressman Kucinich has been at the forefront of issues related to the housing and foreclosure crisis, holding ten hearings in his congressional Subcommittee on the issue, including two in Cleveland. After the Department of the Treasury left Ohio out of the Hardest Hit Fund, a new program for home foreclosure prevention, he rallied the Ohio delegation and secured $172 million for Ohio in a second round of funding.
Kucinich also brought a top Treasury official, Assistant Secretary for Financial Security Herb Allison, to Cleveland to hear from state and local housing officials about the needs of the community. Assistant Secretary Allison heard of the great need in Northeast Ohio and helped Kucinich secure support for assistance in Washington D.C.
“After returning to Washington, I shared your constituent’s concerns with senior Treasury officials and with the leaders of top mortgage services when I met with them to discuss their performance. I used my visit to Cleveland to suggest specific improvements in customer service that the servicers need to make. Please let your constituents know that their voices were heard,” Assistant Secretary Allison wrote to Kucinich following the meeting.
Kucinich also worked to ensure that money made available is used effectively. Foreclosure prevention counselors work on behalf of people who are eligible for federal home loan modification assistance. Borrowers receiving counseling assistance showed a markedly higher rate of successful loan modifications than those who did not. Unfortunately, the standard interpretation of Treasury rules restricted how federal funds could pay for foreclosure prevention counselors, which was an obstacle for the state of Ohio. Kucinich worked with the Department of Treasury to remove that obstacle. Now, Ohio and other states are able to use this money in a way that allows them to hire and train new counselors.
