More financial institutions are announcing agreements with various states to continue and further participation efforts in the Hardest Hit Fund as major financial institutions like Bank of America, Ally Financial, and GMAC Mortgage are just a few of the reported banks that have made announcements here in May that hope to help homeowners in these particular states, which have been continually troubled with high levels of unemployment and other mortgage troubles. It’s hoped the HHF will bring more assistance options thanks to initiatives that can offer modifications, rate reductions on interest, and even mortgage principal reductions in limited cases.
Also, homeowners who are unemployed have been able to benefit from Hardest Hit Fund plans as there are states that have implemented programs to either offer loans or subsidy payments for homeowners that can last for even a few months or up to two years or more in extreme cases, and the foreclosure prevention efforts from the HHF are helping homeowners with a variety of mortgage servicers across the nation. Many banks that have been using home loan modifications have seen somewhat lackluster results in cases where affordability is achieved to an extent where foreclosure is prevented or other issues may have been avoided. While underwater home loan problems, unemployment, and delinquency are all aspects of the Hardest Hit Fund programs that can help homeowners in selected states, there are also federal plans that homeowners have been able to use in certain cases to address these issues as well.
Yet, Hardest Hit Fund plans have been limited in certain areas or in terms of the states that are being helped by banks through these initiatives, but many of the nation’s top mortgage servicers are hoping to make these options available for homeowners as those who may not find the assistance they need from the Home Affordable Modification Program will be able to use these alternatives as a way to prevent foreclosure.
It area where the unemployment rate may be higher than the national average or properties have continued to fall in value are some of the places where these programs may be more focused and offer a wider variety of opportunities, as certain options like mortgage principal reductions may be limited to only certain states or offered by only a few of these financial institutions. Yet, these initiatives are not necessarily set in place to help homeowners who have seen a decrease in their homes value, but rather may be facing foreclosure as a result of negative equity, unemployment, or other problems in their financial life. While, again, these programs will not be available to all homeowners and are not open in every state, homeowners who are likely to find assistance are those that have seen setbacks to the extent where making their mortgage payment has become problematic, but are in a position where foreclosure can be avoided with the intervention of one of these initiatives.