Loan Value Group says its Responsible Homeowner Reward (RH Reward) program has been included as an alternative resource in Ohio's Hardest Hit Fund (HHF) for homeowners who are in a negative-equity position. HHF is designed to help unemployed and underemployed homeowners in Ohio who are experiencing financial hardship and are at risk of mortgage loan default or foreclosure.
The HHF will receive an allocation of $172 million in federal foreclosure-prevention funding. Although no direct HHF funds will be used to finance the RH Reward program – which provides cash incentives to eligible homeowners who remain current on their mortgages – the proposal points out the potential for the program to "prevent redefault" and "prevent strategic default."
To date, RH Rewards have been offered in Ohio and more than 40 other states, the District of Columbia and Puerto Rico. The size of the reward is dependent on many factors, including the size of the mortgage, the amount of negative equity and the region of the country.
SOURCE: Loan Value Group