Mortgage assistance from the Hardest Hit Fund has been an alternative that homeowners in certain states have had when it comes to finding more affordable payments, mortgage forbearance, or even alleviation from mortgage debt in areas where homeowners are having trouble with problems like unemployment or negative equity as many states that have implemented these programs are using these funds to help homeowners make their mortgage payment, offer dischargeable loans that hopefully will prevent foreclosure and promote long-term housing market sustainability by requiring that homeowners remain in their home before these loans are forgiven, and there are also some plans that may help homeowners who have fallen behind on their mortgage payments.
Yet, there has been some concern that states aren’t doing enough to implement these programs or homeowners are simply unaware that assistance may be available in their area, as homeowners in states like California, Nevada, and Arizona may have found that their state’s housing agency can offer a variety of programs to help them avoid the loss of their home but there are also plans in states like North Carolina, Florida, and recently Illinois that can help homeowners through different programs and funds made available to these various housing agencies.
While the ability of a homeowner to qualify for these types of assistance programs may vary, there have been some problems that homeowners have seen when it comes to taking advantage of these plans as some states have simply not been in a position to implement these programs in a timely manner but there are also some servicers that may not participate in the Hardest Hit Fund in certain states, which obviously can hurt their homeowners particularly if these plans may be of specific use to a homeowner in need. However, recent reports have shown that many major financial institutions that service home loans are on board with these programs and, in areas where particularly difficult economic situations are in place, homeowners may want to use these plans as an alternative to programs like home loan modifications.
Keep in mind, just as is the case with federal modification plans, assistance available from the Hardest Hit Fund is not always going to be guaranteed as some homeowners may have to meet certain conditions but when factors like unemployment, delinquency, or even negative equity are problems, certain states have used this program to offer various options to homeowners in their area in the hopes of keeping the number of foreclosures down in the coming months.
In some states many homeowners have been helped by these plans but there are cases where some may have not taken advantage of these plans as fully as they could, which has left funding still available in some areas. Homeowners who are facing mortgage payment troubles are being urged to look to their state’s housing agency to see whether funds are still available from this program, as some states have reportedly been slow to implement these plans in the hopes of avoiding wasteful use of this funding but officials also want homeowners to take advantage of HHF aid that is available and may be more helpful for their situation than other loss mitigation programs.