Five states hit hard by the mortgage crisis will soon share $1.5 billion in federal funds to help the unemployed and the underwater who owe more than their homes are worth.

The Treasury Department on Wednesday approved proposals by Arizona, California, Florida, Michigan and Nevada. The states will use the money primarily to subsidize homeowners’ monthly mortgage payments and to reduce their principal. Some of the funds will also go to paying off second liens or facilitating short sales.

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