$600 million in housing aid for 5 states

Now, an additional $600 million is being doled out to the five states that have the largest number of counties suffering unemployment rates above 12%: North Carolina, Ohio, Oregon, Rhode Island and South Carolina.

"The goal for our second set of awards was to identify states suffering from high shares of populations living in concentrated areas of economic distress," said Alan Krueger, Treasury assistant secretary.

Unemployed and 'underwater' to get mortgage relief

Although these five states are receiving less funding than their predecessors, Krueger said the amounts are equal on a per-person basis.

Because Ohio has the largest proportion of its population living in high-unemployment counties, it will receive the largest share of the funds, totaling $172 million. North Carolina is on tap to receive $159 million; South Carolina will secure $138 million; Oregon is due to receive $88 million; and Rhode Island will get $43 million.

0:00/3:10Homeowners walking away

The program, which is funded with money from the TARP bank bailout, allows each of the states' agencies to propose foreclosure solutions that address local conditions. States that received funds during the first round are due to present proposals on April 16.

The Treasury suggests states offer assistance through innovative initiatives, including unemployment programs and mortgage modifications. As a result, some states are looking at a program in Pennsylvania that offers low-interest bridge loans to the unemployed so that they can pay their mortgages. 

Mortgage help is expandedUnemployed and ‘underwater’ to get mortgage relief