Although some states are slightly recovering from the real estate crash, other states are still struggling with the effects of recession.  A lot of people lost their jobs that also caused a lot of homeowners to lose their homes because of their inability to pay the mortgage.   The Obama administration announced that they will provide more funding worth $1.5 billion to address the housing crisis in states that have the highest rate of unemployment and greatest drop in home values.

The program will use the funds set aside for housing under the Emergency Economic Stabilization Act (EESA) of 2008 and will be provided to states struggling with a high rate of unemployment and where home prices have declined for more than 20 percent from the peak.  The funds will be used for housing agencies in individual states to prevent foreclosures among unemployed homeowners and to provide support for people who cannot refinance because of liens or mortgages that are larger than their home’s value.

President Obama announced the program during a speech in Nevada which has had the highest rate of foreclosures, “underwater” mortgages and unemployment rate of 13 percent.