Hardest Hit Fund Mortgage Assistance Programs–Will State Assistance Plans Be Helpful In 2011?

Mortgage assistance programs from the Hardest Hit Fund have been made available as a way to offer home loan assistance to homeowners in specific states that have been particularly troubled due to unemployment and underwater home loans. There have been some states who have already implemented these assistance programs which can offer more affordability to homeowners facing trouble when it comes to making their home loan payment, assisting homeowners who are struggling from negative equity, and homeowners who may be behind but are currently able meet their payments may also find assistance through these state programs.

Yet, there have been complaints that these Hardest Hit Fund Programs have yet to be fully implemented in certain states due to the fact that homeowner demand has simply overwhelmed state housing agencies and they cannot address homeowner needs fast enough. While there are some programs which may not start until 2011, homeowners who have had trouble with federal modifications or dealing with their mortgage servicer to find a proprietary modification agreement may have foreclosure prevention options through these state-specific programs, if they qualify.

Understandably, homeowners who are in an area where unemployment has been particularly troubling are those who have seen a great deal of foreclosure and other difficulties related to their mortgage. While homeowners who are unemployed do have options from federal programs, like the Home Affordable Unemployment Program, which offers forbearance opportunities to homeowners in need, there are more options through these state-specific plans and it could address particular needs homeowners may face which cannot be met through a federal assistance plan.

However, there are still a wide variety of assistance options which may help homeowners avoid the loss of their home if they are facing a particular trouble. While there are federal programs to address unemployment and underwater home loans, these Hardest Hit Fund Programs may have options which simply go beyond a modification or unemployment forbearance option which could be more beneficial to some.

Obviously, homeowners may still have to work with their mortgage servicer in some cases, but there or certain programs which offer grant-like assistance options to homeowners, borrowing opportunities for loans at 0% interest which may be forgiven, or even foreclosure alternative programs for homeowners who are simply in a situation where these assistants plans may not be beneficial. While homeowners may still contact their mortgage servicer to inquire about assistance, state housing agencies also have information regarding these state-specific programs which could be beneficial to homeowners in areas that are facing a greater than average number of home loan hardships.