The foreclosure crisis has hit virtually the entire nation without discrimination; however, some states, collectively, have been impacted more than others.

Arizona, California, Florida, Michigan and Nevada, in fact, top the list of 50, sustaining average home price declines of 20 percent or more. As a result, the U.S. Treasury Department has earmarked $1.5 billion to “head off” foreclosures in these states, among other, according to Reuters.

It’s been dubbed the “Hardest Hit Fund,” which was announced back in February. And it was carved out of the $50 billion Home Affordable Modification Program (HAMP) to assist responsible homeowners who have “been affected by the economic crisis through no fault of their own.”

The five states submitted proposals, demonstrating that their residents needed the housing assistance, which were all approved.

Here’s the monetary breakdown:

Arizona will get up to $125.1 million for these purposes while California gets up to $699.6 million and Florida up to $418 million. Michigan has been approved for up to $154.5 million of funding and Nevada up to $102.8 million.

In addition to the five states already mentioned, North Carolina, Ohio, Oregon, Rhode Island and South Carolina have submitted proposals for similar assistance. It’s expected that they, too, will receive approval “in coming weeks.”

Government officials reportedly expect to help 90,000 or more homeowners with its “Hardest Hit Fund.” For more information on the program, as well as the complete “Making Home Affordable” initiative, click here.

Mortgage relief is on the way for some struggling homeowners in and around the Gulf Coast region who have been hit hard by the worst ecological disaster in the history of the United States.

Deepwater Horizon, a BP-run oil well that was once located about 40 miles off the Louisiana coast, exploded back in late April. Ever since it has been spewing about a quarter-million gallons (conservative estimate) of crude into the once-pristine Gulf of Mexico.

Fishing and tourism industries have ground to a screeching halt as a result, killing revenue for companies that rely on the Gulf and their ability to pay their employees.

And when people can’t make money, they typically can’t afford to pay their mortgages, among other important bills.

CitiGroup feels their pain and has suspended all foreclosure sales and evictions in the region for three months, starting June 17 to Sept. 17, 2010 in zip codes “within roughly 25 miles of the coastline.”

That includes about 515 counties in Alabama, Florida, Louisiana and Mississippi, according to REOInsider.

Here’s a snip from Vikram Pandi, CEO of Citi, on the foreclosure moratorium:

“In the midst of this crisis, we will continue to explore ways to help people avoid foreclosure so they and their families can remain in their homes and have one less thing to worry about.”

This is great news, considering the recent report we passed along that predicted this crisis could mean $4.3 billion in lost real estate values when all is said and done. A $20 billion (and possibly more) BP fund that will soon be set aside to compensate victims of the spill is also welcome news.

Perhaps more lenders will soon follow Citi’s lead and suspend foreclosures … the more the merrier.

The hits just keep on coming for those in and around the Gulf of Mexico.

Business Week reports that the disastrous uncontrolled BP oil spill one mile underwater, which continues to spew millions of gallons of crude into the ecologically-sensitive waters, will likely significantly impact shore-area property values.

To the tune of $4.3 billion — as much as 10 percent — over the next three years for a 600-mile stretch of prime waterfront real estate.

Alabama, Florida, Louisiana, Mississippi and Texas all border the Gulf of Mexico, which also happens to be a way of life for many residents near the water’s edge.

Indeed, tourism, fishing and other big-time industries have already been hit hard because of the crisis. And now its deleterious affects appear to be on their way toward trickling down to innocent homeowners.

In fact, Don Epley, director of the center for Real Estate at the University of South Alabama in Mobile, Ala., predicts foreclosures are likely right around the corner:

“The defaults will start happening in early fall. You can directly attribute those to the oil spill.”

The report, which references a recent study from CoStar Group Inc., hotels and restaurants are also in major jeopardy of falling into default. Without tourists and other visitors, it will be hard for these establishments to make ends meet.

BP PLC — the massive oil-producing giant responsible for the disaster — has already earmarked funds to help offset the losses in the tourism and fishing industries. Whether or not the company will also put funds aside to assist struggling home/business owners affected by the spill remains to be seen.

Where judges “wipe out” mortgages and punish “contemptuous” lawyers.

It recently happened to a down-on-his-luck Aventura, Fla., man, Orlando Eslava, who just wanted to modify his existing $414,000 loan, according to Law.com.

Eslava got way more than that thanks to a fed-up judge and a lawyer who “misunderstood” the foreclosure process. In fact, his entire mortgage was canceled.

True story.

Here’s a snip from Miami-Dade Circuit Court Judge Jennifer Bailey, who issued the ruling:

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South Florida, specifically Broward, Miami-Dade and Palm Beach counties, was hammered with a Category 5 foreclosure crisis when the bottom fell out of the real estate market a few years ago.

So many owners and investors lost their homes so fast, in fact, that banks and local court houses couldn’t keep up, creating a “backlog” of cases that essentially stopped the process in its tracks … cold.

It’s not uncommon to see entire blocks of homes vacant and/or abandoned, which are not even on the market because the foreclosure actions are incomplete or haven’t even begun.

This is known as “shadow” inventory.

The Palm Beach Post reports that there may now be some light at the end of a very long, dark tunnel. Courts are starting to make a “dent” in the cases that have literally been piling up for years.

But it’s not easy, says Judge Meenu Sasser:

“I am literally working night and day on these. I’m hopeful that by the end of 2010, a significant portion of the backlog will be cleared.”

All told, it’s estimated that more than 53,000 homes in Palm Beach County alone are still in the pipeline, waiting on foreclosure before entering the market as available for sale.

For those who can’t wait while these homes sit idle, feel free to search foreclosed homes for sale in Florida right here.