Federal assistance for homeowners who are in the states which have been particularly hard hit by mortgage difficulties and unemployment may have mortgage assistance options from various state housing agencies. The Hardest Hit Fund was established as a way to bring more affordability is two homes where problems like negative equity, unemployment, or delinquency were present. Obviously, homeowners are in difficult situations concerning their mortgage difficulties, but many of these state programs may be able to address certain housing conditions in their area and prevent foreclosure as a result.
Unemployment is one of the major factors behind housing troubles and has affected numerous areas of the economy as a result. Obviously, consumers who are unemployed cannot purchase goods and services, are having difficulty repaying personal debts, and are simply unable to meet their monthly mortgage payment. While the severity of unemployment differs across the nation, homeowners in these hardest hit states may have additional assistance opportunities available as funding could be offered to particular homeowners who qualify and allow them to avoid the loss of their home.
The programs implemented through the state mortgage assistance plans may offer assistance that is similar to grants, as some homeowners may have their mortgage payment made for a set period of time, up to a certain amount. Also, homeowners who may be behind on their mortgage may be given financial assistance to pay the difference and put them back in a current position on their mortgage, but this would obviously only be beneficial for homeowners who are now positioned to continue making their mortgage payment.
Some states may offer loans at 0% interest and offer forgiveness options for homeowners, as this is another way of providing financial assistance to either meet mortgage payments or being a homeowner to a current position on their mortgage. There are states which also made provide financial assistance for homeowners who owe more on their home and their home is actually worth, as underwater mortgages have made payments difficult for some and simply created a very frustrating situation for others.
While some of these state programs have been implemented, others are only available on a limited basis, while the rest are set to begin in early 2011. Homeowners do still have federal assistance options through modification plans, but those who may not qualify for modification assistance may still have to work with their lender before any of the state housing programs can be offered. Yet, homeowners may contact their state housing agency, their mortgage servicer, or Financialstability.gov for more information.