Oregon to Launch Foreclosure Prevention Program on Friday, by Joy Leopold, Dsnews.com

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Since the development of the Hardest Hit Fund in February, the state of Oregon has received more than $200 million to help homeowners struggling with their mortgages and to develop foreclosure prevention measures.

This Friday the state will open its first foreclosure prevention program.

This launch follows this summer’s development of the Oregon Homeownership Stabilization Initiative (OHSI) to develop foreclosure prevention plans to distribute the $220 million.

The application for the Mortgage Payment Assistance (MPA) program will be available on the recently launched OHSI Web site from December 10 to January 14, 2011.

Program participants will be randomly selected from a pool of eligible applicants by a software program and notified after the application is closed.

Each applicant will fill out the online application and then meet face-to-face with an advisor to answer questions and make sure all required documents have been submitted.

“While we recognize there are not enough resources to serve the great need faced by homeowners in Oregon, we are pleased to have created a solid program that will help smooth the difficult path many families have been traveling,” said Victor Merced, director of Oregon Housing and Community Services (OHCS).

Around 5,000 applicants will be selected to receive mortgage payment help for up to one year or up to a maximum payout of $20,000, whichever comes first.

The MPA has been funded with $100 million of the Hardest Hit money. Three smaller programs developed by the OHSI will use portions of the remaining money for foreclosure prevention initiatives.