As more homeowners are struggling with their home loan payments and problems like underwater mortgages there are assistance plans that have been extended beyond federal programs and proprietary home loan assistance options to state-specific plans which may be available to homeowners in various areas. Options for home loan assistance from plans which stem from the Hardest Hit Fund had begun helping homeowners in late 2010 and are expected to begin aiding more homeowners in various states in early 2011.
These state home loan assistance plans are hoped to bring more affordable mortgage payments, offer solutions to underwater mortgage problems, address issues with second liens, and offer foreclosure alternative plans in some cases. Obviously, each state which has been offered assistance to provide programs for homeowners in need is one where homeowners have been particularly hard-hit by troubles such as unemployment or negative equity.
Yet, state housing agencies are using a variety of methods like loans, modification-type assistance plans, programs which may offer funds to homeowners to either become current on their mortgage or address issues related to unemployment are just a few of the options that homeowners may have through these Hardest Hit Programs. Obviously, issues like unemployment are still a major discouragement when it comes to homeowners making payments, but it’s hoped that with federal mortgage assistance plans still in place, reported increases in the success of proprietary home modifications, and state-specific options for homeowners in various areas where particular financial troubles have been seen by homeowners, more individuals may find the foreclosure prevention assistance they seek.
Again, the methods which are being used by each state are different and some offer grant-like funds for homeowners who may be unemployed and, this assistance may meet their mortgage payment or a percentage of their home loan obligation for a set period of time, while other housing agencies may offer a loan to a homeowner at no interest which may be forgiven at a later date.
While these state-specific programs are different, it’s hoped that where affordability difficulties that homeowners are facing, particularly in areas where home loan assistance is greatly needed, there will be solutions found for more affordable home loan options. Some homeowners may be able to find financial assistance which will bring them current on a mortgage where they have fallen behind on payments or homeowners who may be in a situation where no assistance is available could qualify for relocation aid when moving from their house after participating in a foreclosure alternative program.
Understandably, these state-specific programs are no guarantee when it comes to preventing foreclosure, but it’s hope that in 2011 as more of these programs are offered and homeowners begin to see more results from programs which have already been implemented, housing troubles in these hard-hit areas will become less severe and, as economic recovery and employment opportunities improve, foreclosures may become less of a problem in areas across the country.