Hardest Hit Fund Offers Foreclosure Prevention Options But Are There Alternatives When A Servicer Isn’t Participating?

Many homeowners are aware that various states are hosting the Hardest Hit Fund which is giving some struggling men and women the opportunity to find relief from their mortgage payment difficulties through reinstatement programs, payment assistance, and even principal reduction options, but these programs vary from one state to another and may not always offer the same amount of opportunities for homeowners in their respective areas. However, there are some homeowners who are having problems related to issues when a servicer isn’t participating in the Hardest Hit Fund or may not be participating in all of the programs offered from a particular state housing agency’s HHF initiative.

For the most part, many of the nation’s top financial institutions are assisting homeowners through this particular avenue but this does not indicate that a servicer will always offer all of the programming available within a specific state, and this can be troubling for homeowners who are in need of this particular type of foreclosure prevention assistance. However, homeowners do need to remember that there are alternatives that may be used to help them avoid the loss of their home as numerous men and women simply may not qualify for the Hardest Hit Fund or may not live in a state where this particular option is available.

While the HHF can address issues like delinquency or unemployment, there are also federal programs like those from the Home Affordable Modification Program that may be able to assist homeowners who are struggling from these particular issues as well. Understandably, homeowners are not guaranteed aid through any type of foreclosure prevention option but there are modifications, refinancing plans, and even extension programs that may address problems like unemployment or negative equity that can come from these federal initiatives or directly from a homeowner’s mortgage servicer.

Homeowners may need to contact their servicer primarily to see what opportunities may be available when mortgage payment troubles become an issue, and many officials often suggest this be done as soon as possible since homeowners may need to explore multiple options to fit their needs. However, homeowners also have been repeatedly reminded over the past months that there are housing counselors available to help them through this difficult time in their lives and resources from the Homeowner’s HOPE Hotline may be able to walk with homeowners through these various options that could be beneficial when it comes to saving their home through payment reductions, forbearance plans, or other initiatives.

Again, most homeowners will find that their servicer is participating in programs like the Hardest Hit Fund, but even if this is not the case there are options that can be explored outside of this particular program, as not every state has these plans in place to address the needs of their homeowners. Yet, speaking with servicers, state housing agencies, and qualified housing counselors has been able to give homeowners a broader view of the foreclosure prevention options that may be available for their specific situation, and if homeowners address these issues early they may be able to find a solution to their problem without going through a great deal of stress in the process.