Barack Obama's Government on Wednesday issued a statement that it will provide a package of $3 billion to those who have lost their jobs and are having hard time to pay their mortgages.
The U. S. Treasury Department stated there are at least 17 states, which have been most affected and have the highest number of unemployed population, where the situation of difficulty in paying mortgage amount has emerged.
In the month of June, an amount of $1.5 billion was given to five states, which included California, where the rates of houses went down to almost 20%. The fund also gave an additional $600 million to five more states which had an elevated unemployment rate.
As per Andrea Risotto, the Treasury spokesperson, Troubled Assets Relief Program will award $2 billion and an exclusive amount of $50 billion will be provided for mortgage refinance under Making Home Affordable program.
The money will be given based on the rate of unemployment population in different states.
In order to get the financial help from the fund, the states should qualify for the unemployment insurance, be in position of non-payment, should have not more than 120% median earnings for their region, and should be able to show that their house is the only main place to stay.
The loan will be rejected in case the borrowers have remortgaged the existing loan and have taken the money out.