Mortgage assistance opportunities available from capital which was granted to states by the Hardest Hit Fund are set to offer troubled homeowners various mortgage assistance options outside of plans available through programs like the Making Home Affordable Program. Yet, there are those who question whether these state mortgage assistance plans will see success, as they are similar in some cases to federal modification and mortgage assistance plans.
Plans like the Making Home Affordable Program have been heavily criticized and homeowner complaints still continue despite the fact that these assistance options are in place for homeowners who face foreclosure. Extension programs have also been created to address the needs of homeowners who are suffering from underwater mortgages, second mortgages, or unemployment, but these plans have also been felt to have provided lackluster results in some cases.
Yet, assistance plans made directly from various state housing agencies are hoped to have more success since homeowners are affected differently concerning mortgage troubles faced from state to state. While many of these assistance programs do offer modifications-like programs, unemployment mortgage assistance, principal reduction or underwater home loan aid, and even relocation programs for homeowners who are facing inevitable foreclosure, there is concern whether these plans will be sustainable in the long run.
However, assistance options, like an unemployed mortgage assistance plan in North Carolina, may address certain issues, keep homeowners in their home, and allow for sustainability in the long run. As an example, a North Carolina program for unemployed homeowners offered these individuals, who qualified, the opportunity to borrow a loan for up to three years in specific cases, which came at 0% interest, did not require payment for the first five years, and will be forgiven if the homeowner stays in their home 10 years or longer.
While this is only one example of numerous programs implemented by various state housing agencies, it’s hoped that these plans can provide sustainable mortgage assistance options while the economic situation and job market slowly recovers. Homeowners who may need employment opportunities to begin repaying their mortgage but are still suffering from unemployment might have opportunities to save their home through these Hardest Hit Programs, but only time will tell whether they will help these various states reduce the amount of foreclosures they are seeing.