"Restoring Stability: A Save the Dream Ohio Initiative," aimed at stopping foreclosures throughout the state, changed its eligibility criteria effective January 1, 2012, in hopes that more Ohio homeowners struggling to stay in their homes will qualify for the mortgage assistance program. Restoring Stability is run by the Ohio Housing Finance Agency (OHFA), with over $500 million in funding from federal foreclosure prevention programs.

Restoring Stability's goal is to assist 50,000+ Ohio homeowners who are at risk of missing a mortgage payment, may have already missed a payment or are otherwise at risk of an Ohio foreclosure. The program offers hope to homeowners who have not qualified for loan modification programs through their mortgage lender or who simply are unable to make monthly mortgage payments.

The new changes expand eligibility for the mortgage payment assistance program for underemployed and unemployed Ohio homeowners. Additional changes include:

  • Mortgage reinstatement assistance up to $25,000 for Ohio homeowners who previously missed mortgage payments but are now able to make the monthly payments
  • Full mortgage payment assistance up to 15 months or $20,000 for Ohio homeowners who are unable to make their payments
  • Ohio homeowners who received a discharge in a Chapter 7 bankruptcy may now be eligible for assistance
  • Ohio homeowners living in manufactured homes titled as real estate may now be eligible for assistance
  • Amounts of liquid assets held by an Ohio homeowner seeking mortgage assistance have been raised to allow more people to qualify

While the changes in the program requirements are positive steps toward helping Ohio homeowners stay in their homes, there may be additional factors contributing to a family's inability to make monthly mortgage payments. Medical and healthcare bills, credit card debt, home equity lines of credit (HELOCs), auto loans and other types of debt expenses cause monthly expenses to balloon to unpayable amounts.

Filing for Chapter 7 or Chapter 13 bankruptcy protection may be a better solution to your financial problems if you have other debt than your home mortgage or do not qualify for Restoring Stability's mortgage assistance program. An Ohio bankruptcy and foreclosure defense attorney may be able to help you on the path to a fresh financial start in 2012.

Source: Ohio Housing Finance Authority, "Restoring Stability," 1 January 2012