Arizona foreclosure program receives funding

Save My Home AZ is slated to begin in September.

A program designed to help stop foreclosure filings in Arizona recently received $125.1 million in funds from the government.

With the assistance, the Arizona Department of Housing plans on funding a new program called Save My Home AZ, which is expected to start in the beginning of September. The ADOH and 22 counseling agencies will help guide homeowners through a process that could save them as much as $100,000 on their home loan.

According to the U.S. Treasury Department, the program will allow some people in Arizona to reduce their principal or interest rate. It may also create the opportunity to increase loan terms. One of the goals of the program is to get borrowers into a permanent modification program.

"While we've made important progress stabilizing the housing market and keeping responsible families in their homes, the Obama administration will continue to do everything it can to help those who are struggling the most during this difficult time," Herbert M. Allison Jr., an assistant secretary with the Treasury, said.

Homeowners in Arizona may find some assistance through the Home Affordable Modification Program, which is a federal effort aimed at helping people avoid foreclosure.