Breaking News: HUD To Offer Interest-Free Loans To Distressed Homeowners

Tyler Durden's picture

So who were all those saying this is an insane plan?

BN   8:30 *HUD WILL OFFER INTEREST-FREE LOANS TO DISTRESSED HOMEOWNERS
BN   8:30 *HUD ANNOUNCES HELP FOR HOMEOWNERS IN PRESS RELEASE TODAY

Washington (AP) -- The Obama administration is providing $3 billion to unemployed homeowners facing foreclosure in the nation's toughest job markets.

The Treasury Department says it will send $2 billion to 17 states that have unemployment rates higher than the national average for a year. They will use the money for programs to aid unemployed homeowners. Some of those states have already designed such programs.

Another $1 billion will go to a new program being run by the Department of Housing and Urban Development. It will provide homeowners with emergency zero-interest rate loans of up to $50,000 for up to two years.

The administration was required to launch the programs by the financial regulatory bill signed by President Barack Obama last month.