California still has $1B in housing crash aid to deliver

Feb 20, 2015 1:11 PM by News Staff

LOS ANGELES (AP) - California still has about $1 billion in federal aid to hand out to victims of the housing market crash.

The Los Angeles Times reports that the state has delivered less than half of nearly $2 billion in the fund aimed to help homeowners in areas where home prices collapsed and unemployment soared.

Starting in 2010, the Treasury Department's Hardest Hit Fund provided a total of $7.6 billion to nearly 20 states.

The state's version, called Keep Your Home California, included a focus on helping banks finance debt forgiveness by reducing mortgage principal.

That focus, officials say, contributed to the delays because most lenders declined to accept the program until the state agreed to shoulder its entire cost.

The program also helped delinquent owners catch up on payments.


Information from: Los Angeles Times

Copyright 2015 The Associated Press. All rights reserved.

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