The Federal government has provided $7.6 billion to 18 different states under its Hardest Hit Fund, designed to help struggling homeowners stay in their homes.
But a new report shows that the states with the highest rate of foreclosures are doing the worst job of getting these funds to borrowers, with only $3 billion having been disbursed.
[The Congressional Research Service] found that states have disbursed widely varying percentages of their Hardest Hit money, from 21 percent in Alabama to 84 percent in Rhode Island. Some of the states hit hardest by the foreclosure crisis have distributed the lowest percentages, including Florida (26 percent), Michigan (29 percent), Arizona (34 percent) and California (36 percent). As of October, Florida still had the nation’s highest foreclosure rate. Nevada, which has distributed a little more than half of its Hardest Hit money, had the second-highest rate.
In addition to Rhode Island, Oregon and the District of Columbia also disbursed a relatively high percentage of their Hardest Hit money, nearly 70 percent each.