Arizona Foreclosure Program Helps only ONE Borrower

This is just sad.

A $125 million program designed to help Arizona homeowners facing foreclosure has fallen significantly short of its goals: Since its introduction in September 2010, it has only helped a single homeowner.


The Phoenix Business Journal reports that the "Save My Home AZ" program's sole recipient will have $40,000 cut from a distressed home loan. The quantity of assistance is significantly smaller than the expected volume of aid originally envisioned by Arizona Department of Housing Director Michael Trailor when he unveiled the program last fall.

"At best, these funds will assist just over 4,000 households or around 11,000 individuals to remain in their homes," Trailor said, noting that Arizona had the nation’s second-highest foreclosure rate.

Why did the program fall 3,999 households short of its goal? One key stumbling block might be in how the program is coordinated: Eligible borrowers can receive up to $50,000 to pay off their principal only if their lender agrees to match the amount. So far, the National Bank of Arizona is the only lender participating in the program.



SOURCES: Phoenix Business Journal, Arizona Department of Housing