The Hardest Hit Program has offered options for homeowners who are in need of unemployment assistance or who may be in an underwater mortgage situation and could benefit from a principle right down as their home loan debt greatly exceeds the value of their property. Numerous states are participating in the Hardest Hit Fund and able to offer a variety of homeowner debt relief, unemployment assistance, or underwater mortgage aid that could be vital in helping homeowners avoid the loss of their home.
Many of these states are offering reinstatement programs which will allow homeowners to receive assistance to bring them current on their mortgage when they have fallen behind on payments, but in situations where unemployment and negative equity has been particularly troubling, there are also plans that may be beneficial in these areas as well. Some states are offering loans to homeowners that will pay their mortgage for a set period of time while they are unemployed and if homeowners remain in their home for an additional time span afterward, the loan may be forgiven and the homeowner could, essentially, owe nothing on this loan.
Yet, there are also reports that some lenders are working to help underwater homeowners as well, due to the fact the negative equity has been another problem homeowners have faced. According to HousingWire.com, Bank of America recently notified numerous homeowners in Arizona of mortgage assistance and principal write downs that could be available in their particular situation. Obviously, numerous underwater homeowners have been seeking some form of mortgage principal relief as property values continued to decrease in areas across the nation over the past months.
However, homeowners who have been struggling with a variety of mortgage troubles may find the solutions they need through the HHF as, again, there are different options from state to state that are hoped to address particular issues that homeowners in those locations have faced. While states that have seen a great deal of trouble in the housing market, like California, Nevada, Arizona, and Michigan have Hardest Hit Fund Programs in place, there are also programs in states like Alabama, Florida, and North and South Carolina as well.
All of the states in the HHF will have different plans and methods for implementing these forms of housing assistance, but homeowners will, in most cases, be able to address similar issues, again like unemployment, negative equity, delinquency on their mortgage, and in some cases homeowners who are relocating after a short sale or deed-in-lieu of foreclosure plan may receive assistance with their moving costs. It’s hoped that these HHF programs can provide another form of foreclosure prevention assistance if plans like home loan modifications are unhelpful for homeowners in these areas.