Housing scorecard finds low-income communities hit hard

The U.S. Department of Housing and Urban Development and the U.S. Department of the Treasury recently released the November Housing Scorecard, which found low-income communities are struggling to stabilize their housing markets.

The scorecard showed that the Obama administration's programs to provide refinancing options for underwater homeowners are struggling to reach consumers in low-income communities, thus foreclosed properties continue to clog the market.

More than 5.4 million modification arrangements have started between April 2009 and November 2011, with more than 1.7 million receiving modifications under the HAMP initiative. Plus, eligible homeowners who are working through HAMP have a likelihood of earning a permanent modification on their home loans, enabling long-term financial success.

Programs are also being established on the state level to help struggling homeowners. The Milford Beacon reported that the Delaware State Housing Authority created the Delaware Emergency Mortgage Assistance Program to help underwater homeowners avoid foreclosure. Homeowners can apply for the assistance and receive a loan if they lost 15 percent or more of their income due to job loss or reduction in work hours. Also, those who cannot work because of an injury or illness may be eligible.

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