Many homeowners are aware of the Hardest Hit Fund programs that may be available in certain states to aid homeowners who are struggling to make their mortgage payments, who may be unemployed, or who may be behind on their mortgage and need help to become current so that they can avoid foreclosure after suffering financial setbacks. However, while these programs have been used to benefit numerous homeowners, there are some limits that homeowners may still be unaware of and, as a result, it needs to be understood that homeowners may have to look at not only whether this option is available in their state but in what particular programs their mortgage servicer happens to be participating.
As an example, homeowners who may have been particularly hard hit in areas like California, Michigan, or Florida, just to name a few, may have similar programs to address issues like mortgage payment assistance or unemployment problems that have led to an inability of the homeowner to pay their mortgage. Yet, the servicers that do participate in the Hardest Hit Fund may not be working in every area of available programming that has been implemented by a state housing agency. California, for example, has a variety of servicers who happen to be working within the Keep Your Home initiative, but not all servicers are using every program with in this particular homeowner assistance plan.
Essentially, homeowners will need to either contact their mortgage servicer, look to their state’s housing agency to see whether this particular program is offered, and then explore what options may be available within their state and from their servicer before seeking out a specific plan. Understandably, some homeowners may be frustrated due to the fact that their state may not have these particular programs in place, but supplemental programs like the Emergency Homeowners’ Loan Program do still offer homeowners a chance to receive funding in cases where unemployment has been a problem and, if certain conditions are met, this loan that is given to homeowners to pay their mortgage will be discharged over time.
Yet, homeowners are also finding that new options within old programs may go beyond simple home loan modification assistance plans and if plans from the Hardest Hit Fund are either unavailable in a homeowner’s specific state or the program they need from their state’s HHF plan is not being used by their servicer, options like unemployment forbearance plans may also be available to help specific homeowners as new rules were recently proposed to extend these forbearance periods to one year.
However, officials want homeowners to be aware of these limits on programs like the Hardest Hit Fund due to the fact that homeowners may be in a position where they feel these plans are available and may not take enough initiative to fully explore these plans before their financial position becomes too problematic. What it comes down to is a homeowner who is facing financial distress needs to begin looking at what options will be available to them all the way from modifications to state housing programs so that they will no what plans are not only available to potentially help in their situation but if one route for homeowners is closed they will know what other roads they may be able to take to avoid foreclosure.