Oregon Public Broadcasting

The White House released details Monday for a plan to help families in five states stay in their homes.

Oregon was chosen as one of those states because of its high unemployment rate.

This is the second round of federal assistance for states hardest hit by the housing crisis.

The first round went to states that suffered real estate price drops of 20 percent or more -- that didn't include Oregon.

This second round is aimed at states with pockets of unemployment higher than 12 percent. 

It’s designed to help families on the brink of losing their homes not because of bad financial decisions, but because breadwinners are losing their jobs.

The feds will split $600 million among Oregon, Ohio, Rhode Island and North and South Carolina.

The effort is meant to keep those families in their homes -- and to keep real estate prices healthy.

Diana Farrell, the Deputy Director of the National Economic Council, says it's up to the states how they want to spend the money.

"You know, you could have a large number of folks helped a little bit or a few number of folks helped quite a lot," Farrell said. 

Most of Oregon's so-called 'Hardest Hit Funds' are expected to go to 14 counties -- those with unemployment rates that exceeded 12 percent last year.

To get the money, states have to submit ideas about how to distribute the funds to the feds. Farrell says everything will be considered -- from helping people modify their mortgages, to paying-off second liens on a home.

"As an example, one thing that we've seen as done successfully....is to recognize that a number of people who lose their jobs are in a very untenable situation with relative to their mortgage, but it's a short-lived situation. They will get jobs again in a few months, and if they can simply be bridged over for a period of time, they can stay in their homes and not lose their homes just because they lost their jobs," Farrell said.

The money is expected to arrive by the late summer.

Senator Jeff Merkley says the money is  important because foreclosures damage home values across an entire neighborhood, whether or not owners are working.

Deficit hawks aren't so happy. They point out the national debt now stands at about $12.5 trillion.

In 2007, it stood at $9 trillion.