Consumers Struggling With Debt, Foreclosure Could Soon Receive Aid

As part of a nearly $8 billion federal effort to help keep Americans in their homes, a version of President Barack Obama's Hardest Hit Fund will soon be operational in 18 states sharing the funds.

The initiative was announced last year to help consumers in states that have been experiencing higher than average rates of joblessness, falling home values and foreclosures.

Consumers in these states will be able to apply for the funds to help them catch up on delinquent mortgage payments. The loans expire after five years, provided the borrower keeps up with their bills and stays in their current home, USA Today reports.

California, Florida and Oregon will soon implement expanded versions of this program after conducting earlier pilot programs, the news source says. California and Florida account for more than $3 billion worth of the total federal funds.

However, some experts believe the program does not go far enough, as only a small minority of applicants will be able to receive the funds. In addition, consumers could still fall back into debt by not finding employment and eventually lose their homes in spite of the federal aid.