State Housing Agency Assistance Plans May Offer Affordable Mortgages–Will More Success Be Seen?

Many state housing agencies in various areas across the nation which were particularly troubled by unemployment and underwater mortgages, among other things, do have mortgage assistance plans available thanks to capital from the Obama Hardest Hit Fund. Homeowners who have been attempting to avoid the loss of their home or deal with problems like negative equity have been able to turn to federal programs which are part of the Making Home Affordable Program, which again was implemented by the Obama Administration.

However, many of the nation’s top financial institutions have seen what many feel to be minimal success as the original number of homeowners which were believed to have been able to take advantage of modification programs has not been met. Yet, various states which were provided the funding to implement these assistance plans do have programs similar to these federal modification and alternative assistance programs, to address issues like unemployment and underwater mortgages.

Obviously, states which have seen a particularly troubling time like California, Nevada, Florida, or Michigan, do have plans which may assist homeowners through various means like principal forgiveness programs, loan opportunities, or even transition assistance programs to help homeowners who simply can no longer afford their home.

While there are numerous state housing agencies which have used capital from the Hardest Hit Fund, some of these mortgage assistance plans may not be implemented statewide at the present time. The majority of states which have these plans available do plan to offer assistance to homeowners on a statewide level, but some may currently be limited.

Again, not all states may be participating in this Hardest Hit Fund Program, but a list is available on the Making Home Affordable website.

It needs to be understood that while many homeowners will still have to work with their mortgage servicer for certain programs in individual states, there are also some opportunities from state housing agencies which may afford homeowners the opportunity to gain funding that will be paid directly to their servicer in order to bring them current on their mortgage, deal with negative equity situations, offer principal forgiveness plans, or even meet their mortgage payment for a set period of time if a homeowner is facing unemployment. Many of these states do have limited funding and assistance may be on a first-come, first-served basis, but again, homeowners may contact their state’s housing agency to see if these state-specific programs are available in their area and will help their current mortgage situation.