Financial Help for Families After a Foreclosed House Sale

Anthony Parker on Financing and Mortgage

The city of Nashville in Tennessee has received about $3.1 million stimulus funds in part to help individuals and families who need a place to live in after a foreclosed house sale. The program will provide short-term assistance to these new homeless to help them immediately recover from the misfortunes and get back on their feet.

The $20.3 stimulus program in Tennessee provides short-term assistance to people who are on the brink of homelessness and who are newly homeless get back on their feet immediately. One way is to put a roof over their heads.

Nashville’s share of the stimulus funds would be able to help as many as 200 individuals and 300 families. Statewide, about 5,200 people in 2,500 households will receive rental assistance, according to Tennessee Housing Development Agency program administrator Steve Meinbresse.

The program caters to people who would not qualify for the government housing programs, such as subsidized housing and tax credits, but are experiencing the crisis and need financial assistance for finding and paying a place to stay.

However, for those who want to avoid foreclosed house sale, the program excludes mortgage payments. However, it will pay for the utility deposits, rent, motel vouchers, utility payments and moving costs for not more than a year.

To become eligible for the program, individuals and families should prove that they will be able to get back on their feet in the near future and be able to pay their own utilities and rent once the federal funds run out.

Aside from losing their properties to foreclosures, eligible families also include common reasons, including lost of unemployment benefits, health reasons and job loss.

According to Meinbresse explained that the program is designed to help people who are in desperate need for existing housing and for those who have become homeless because of the sluggish economy.

Meanwhile, the program will also help homeowners with financial management, benefit applications and job coaching. Industry experts said that there is a tendency that thousands of people are going to take advantage of the short-term assistance program.

In Nashville, nine agencies have been chosen to help people who lost their properties on foreclosed house sale. These are Safe Haven, YWCA and Salvation Army.