If everything goes according to plan, cash-strapped homeowners in Ohio, North Carolina, South Carolina, Oregon, and Rhode Island will receive more financial assistance from the government.

A top official from the Department of Treasury said as many as 50,000 homeowners from the five states will benefit from the $600-million “Hardest Hit Fund.” The fund, which was announced earlier this year, is geared towards minimizing foreclosure activities in areas with high unemployment rate.

Herb Allison, Treasury Assistant Secretary for Financial Stability, said the Treasury Department has already approved the foreclosure mitigation measures proposed by the local housing agencies of the abovementioned states. He added that the states are expected to receive federal aid in the “next several months.”

According to Allison, a homeowner who will qualify for the financial assistance will receive an average of $10,000 over the course of the program, which is expected to end two months after President Barack Obama steps down from office in 2012. “For the people who are going to be helped by this, it will make a very meaningful difference,” the Treasury official added.

The $1.5-billion “Hardest Hit Fund” was initially intended for the states of California, Nevada, Arizona, Florida, and Michigan, which were mostly affected by the burst of the housing bubble a few years ago. Under pressure from lawmakers, the Obama administration decided to inject an additional $600 million into the program to accommodate struggling homeowners in Ohio, North Carolina, South Carolina, Oregon, and Rhode Island.

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