The US Treasury administers the Hardest Hit Fund (HHF), which provides aid to the states that were most impacted by the economic crisis. Each of these states have local agencies that help homeowners in various ways, including mortgage payment assistance for the unemployed, principal reduction, and transactional assistance. This helps people either afford the homes they’re in, or move to more affordable housing.
Programs & Eligibility
- The Mortgage Payment Assistance Program is available to eligible homeowners who have experienced an involuntary job loss and are receiving unemployment compensation benefits by providing monthly mortgage payments including principal, interest and escrow expenses
- The Loan Modification Assistance Program provides funds to assist financially distressed and/or underemployed borrowers in achieving modification of their home loans as a servicer-approved, one-time distribution of funds to fill a financial gap that limits a homeowner’s eligibility to qualify for a loan modification. Funds may be used to reduce the outstanding principal balance, pay delinquent escrow or past due payments.
- The Short Sale Assistance Program assists financially distressed homeowners with the servicer-approved short sale of their primary residence who can no longer sustain their monthly mortgage obligation due to a hardship such as unemployment, underemployment, divorce, death or disability.
How to Apply
You can apply for the program directly at the state website above. However, it may be a good idea to talk for free to a nonprofit counselor from a HUD-approved agency to find out all the federal, state and lender programs that you may qualify for and receive a personalized action plan on how to get started.