Certain states which were particularly hard hit by the recession, and as a result have seen drastic drops in property values and high levels of unemployment, may have received funding from the Hardest Hit Fund and may now be able to offer homeowners assistance through various state housing agencies. These programs, which mirror foreclosure prevention programs from the Making Home Affordable Program in certain areas, may be available to homeowners who are delinquent in their mortgage and in need of assistance to prevent foreclosure.
These programs will obviously vary from state to state, since each state’s housing finance agency has been charged with implementing these programs, but the majority of housing agencies which have received funding from the HHF typically have some form of reinstatement program which allows homeowners to take advantage of assistance options if they are behind on their mortgage.
There are some state housing agencies which will offer homeowners a loan, at little or no interest, which will offer them the ability to either become current on their mortgage payment or reduce the amount of delinquency they are experiencing at the present time. Servicers would be paid through this fund or program implemented by a state housing finance agency, which obviously would allow homeowners who have fallen behind on their mortgage payment and face foreclosure the opportunity to get their financial life back in order.
While many feel that these HHF programs may be unhelpful to certain homeowners, like those who have seen a drastic reduction in their income or may be unemployed, there are those who believe that homeowners may find the assistance they need through these state-specific mortgage assistance plans, as state housing agencies may be able to provide a more in-depth assistance option to homeowners than national financial institutions through modification plans.
There are some states which are still in the process of creating these plans, while others have had state-specific mortgage assistance available for some time. Yet, homeowners can contact their state housing agency or, in some cases, consult their mortgage servicer about opportunities available through these Hardest Hit Fund programs.