US President Barack Obama has unveiled a package of measures amounting to $1.5 billion. This is intended to assist victims of the US housing crisis in the state of Nevada, where the collapse hit particularly hard.
“This fund’s going to help out-of-work home owners prevent preventible foreclosures,” said Mr. Obama, adding that the programme will also help threatened homeowners to pay their mortgage obligations.
The plan will include assistance for borrowers who now owe more than their home is worth following the collapse of property prices, and aid those who availed for second mortgages in a desperate bid to keep their houses.
This will apply to states worst hit by the burst housing bubble, with home prices falling more than 20 percent from their peak.
According to the White House, many people still find themselves owing more on their mortgage than their home’s value, while prices of homes have begun to stabilise.
In an attempt to stabilise the housing market and reduce foreclosures across the country since the peak of the fiscal crisis in September 2008, the Obama administration has already spent a large amount of money.
California, Nevada and Florida, which used to be states with booming housing markets, have been worst hit by the housing sector collapse.