Homeowners continue to fight against foreclosure and other forms of mortgage distress through programs that have been implemented in various states through the Hardest Hit Fund, but there are some questions as to how these programs can help homeowners find the aid they need to prevent foreclosure. Federal programs, like modifications, has been seen as somewhat lackluster, despite success that homeowners have gained through permanent modification efforts. Yet, for homeowners who are in trouble when it comes to meeting their monthly payment obligation on their mortgage related to factors like unemployment or for those who may have simply fallen behind on their mortgage, there are a variety of programs in different states that can be helpful.
Some homeowners who may be unemployed can receive loans, which are similar to grants, in that they come at 0% interest and will be forgiven if a homeowner meet certain qualifications. Also, reinstatement programs have offered financial assistance to homeowners who have fallen behind on their mortgage to bring them current in cases where these homeowners can continue to make their mortgage payments but need assistance overcoming a rough patch in their financial life which, again, caused them to get behind on their mortgage payment.
Also, underwater home loans are a particular area of concern for many, as there are a few options that may be available for homeowners to receive principal forgiveness and, as a result, many homeowners have simply wanted to walk away. Yet in these areas where underwater homeowners have been particularly stressful, these HHF programs can aid homeowners by offering principal forgiveness opportunities in instances where foreclosure may be reported as a result of this particular form of assistance.
Yet, there are some who feel that these programs are not going to benefit the vast majority of homeowners as the amount of individuals that can be helped in numerous states is far fewer than the number of homeowners who are actually experiencing some form of distress. An article on USAToday.com made mention of this problem which is present in Nevada as 400,000 homes could potentially benefit from some form of mortgage assistance, but the Hardest Hit Fund program for Nevada is only geared to help 22,000 homeowners, and the article goes on to state that these programs may only offer minimal assistance in the long run as some homeowners may receive assistance but still lose their home down the road.
However, these plans are another effort in the overall foreclosure prevention initiative that is being launched by the federal government and various housing agencies as the states receiving assistance from these particular programs are those that have been particularly burdened under the weight of the recession, unemployment, and the devaluation of properties.