Recently, Illinois announced that they would be offering financial assistance to unemployed homeowners through the Hardest Hit Fund Program, which has been used in a variety of states where problems like high levels of unemployment, in many cases that are above the national average, have continued to be a drain on the lives of homeowners who are facing the loss of their home without some sort of aid. This new initiative that has recently come to light is using a similar method of homeowner assistance that has been implemented in other states, but will hopefully keep more homeowners in their home while they continue to look for work and find financial stability.
Reportedly, this new program will help homeowners in a manner that has been, once again, used by other states and is similar to programs like the Emergency Homeowners’ Loan Program in that homeowners could qualify for a loan that will help them meet their mortgage payment obligation for a set period of time and, if conditions are met within this program, homeowners would not have to repay this debt when all is said and done.
The Hardest Hit Fund continues to grow in some areas, as there are states that have not fully implemented the funding into programs that may be beneficial for homeowners and of course there are some banks that have not signed on for certain HHF programming in certain states. This does not mean that homeowners do not have opportunities outside of state-specific plans when it comes to foreclosure prevention assistance for homeowners in need, but these state programs might be in a better position to help some homeowners than federal initiatives like the Home Affordable Unemployment Program.
However, since unemployment has remained a major problem across the nation, homeowners are still being urged to at least explore and research opportunities that may be available from plans like the Unemployment Program or these dischargeable loan initiatives, and any other state-specific unemployment financial aid plans, that may be available in their area or from their mortgage servicer. Some banks are offering homeowners a forbearance on their mortgage payment, while these state programs are offering opportunities like these loans that will make a homeowner’s mortgage payment and allow them to avoid repaying this loan if they stay in their home for a set amount of time.
Some states are seeing unemployment rates higher than the national average, which currently stands at 9.1%, but with these homeowner assistance programs available in a variety of states and with national servicers, it’s hoped that more homeowners will take advantage of the programs that are offered in their area or from federal plans to avoid foreclosure when unemployment may be a factor in their lives.