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Delawareans May Be Able to Tap Federal Funds to Avoid Foreclosure

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Delawareans May Be Able to Tap Federal Funds to Avoid ForeclosureThe U.S. Department of Housing and Urban Development recently announced that it would grant $6 million in federal funds to the state of Delaware to help its residents avoid foreclosure, according to a report from the Delmarva Daily Times. Through the new program, which will be administrated by the Delaware Emergency Mortgage Assistance Program, consumers who are at least three months delinquent on their home loan payments but who previously had a good payment history prior to their loss of income will be able to receive no-interest loans of up to $50,000.

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Some of areas of Delaware hit hardest by the recession and mortgage meltdown have seen foreclosure rates nearly double, the report said. Sussex County alone saw property seizures leap from 978 in 2008 to 1,522 in 2010.

“You can see how many people this (program) has the possibility of assisting,” Kathi McCoy, public information officer for the Delaware Housing Authority, told the newspaper. “If you look population-wise, Sussex has been hit very hard.”

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This federal program is not unlike several others that currently exist, though many critics of these initiatives say they are too difficult for even severely troubled borrowers to qualify for.

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