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Hardest Hit Fund Program Offers Local Help

There are a slew of Federal programs out there to help people combat mortgage debt and get their homes back in the black and reduce the risk of impending foreclosure. There are the HARP and HAMP programs which both reduce rates and other assistance which can cut down the total interest owed or even lower the actual principal amount for a home loan.However, qualifying for these federally sponsored programs requires passing some stringent restrictions. You might have better luck looking for local aid.

Among many state-sponsored mortgage assistance programs, the Hardest Hit Fund Program really stands out. Though there may be some money from the federal government in there, they have little to do with the disbursement of funds or seeing that the money goes where it’s supposed to be going.

Like every big government agency there exists much potential for fraud here but if you’re in real need of assistance you can rest assured nobody is going to try and steal your home which is already worth less than what you owe.

In total, about $7.6 billion has been set aside to help residents from a select few states which got hit the hardest by the housing bust. Alabama, Arizona and California all got it bad over the last few years. Florida, Georgia and Illinois are also suffering from rock bottom property values and sky high mortgage debt.

Indiana, Kentucky, Michigan and Mississippi are also all suffering from a real lack of money flowing into the state economy. Nevada and New Jersey also make the list, as do North Carolina, Ohio, Oregon and Rhode Island. It’s topped off with South Carolina, Tennessee and Washington D.C. which isn’t a state but is still suffering bad.

Qualifying for the Hardest Hit Program

That’s an exhaustive list and the odds are good if you live in the United States, you live in an area which qualifies as one of the hardest hit. There are some other circumstances you must meet before you can expect to get any help from your local state agency though.

You’ve got to live there for starters; no saving your vacation properties. If you’re working full time, you can forget all about this as the program is only for those underemployed or totally out of work.

You pretty much need to be broke too, or else they will have you put most of your money toward reducing your monthly debt before giving a hand.

Any bankruptcies in the past will pretty much disqualify you from getting aid from the Hardest Hit program in your state, if there is one. Your mortgage also needs to be from a big bank, not an independent lender or otherwise financed by the person from whom you bought the house. For mortgages such as these, you’re on your own.

Also, unlike many programs which automatically opt you out if your mortgage is from before January 1, 2009, the Hardest Hit program will only consider applications with mortgages dated before this time.

Because unique concerns are sure to arise in each state you absolutely must find some qualified legal help when trying to navigate this messy morass. A home loan modification lawyer would be just the resource you need to get from one end of a Hardest Hit application to the other.

While an attorney loan modification might seem exorbitant, consider the alternative to winning your appeal for financial aid.

4 Responses to Hardest Hit Fund Program Offers Local Help

  1. Celio February 7, 2015 at 11:48 am #

    Do we really need to have an experienced for late mortgage payment, lapses in employment etc.. to be qualified for loan modification.

    • Attorney Load Mod February 9, 2015 at 8:53 am #

      Evidence of some hardship within the household is helpful. However it is important to note that it is NOT required. If you are behind on your mortgage and need a loan modification then the most important part is that your payment be higher than 25% of your gross monthly income. In this situation your bank will usually drop your interest rate and/or defer or forgive some principle to make your payment affordable.

      In the instance of an FHA mortgage you can have a mortgage payment that is, say, 10% of your gross monthly income and you will still qualify for a loan modification. You MUST be very careful when you have an FHA mortgage as banks will frequently tell homeowners that they don’t qualify for any type of mortgage assistance. The reason that banks do this is because an FHA mortgage is fully insured by the FHA and the bank will recoup 100% of their losses if they have to repossess your home. This option is always much cheaper for the bank despite their requirement that they work with the homeowner.

  2. Robert January 22, 2015 at 12:11 pm #

    I have a question about the Hardest Hit Fund. When do funds from this program run out? Will your team of lawyers help me obtain mortgage assistance with these funds?

    Thank You

    • Attorney Load Mod January 22, 2015 at 12:20 pm #

      Robert, hardest Hit Fund assistance varies from state to state. It was primarily designed as a mortgage relief program for homeowners that were behind in their mortgage and experienced lapses in employment. Some of the hardest hit states are: Illinois, Ohio, Michigan, California, Florida and New York. There is a limited amount of funds available and we can expedite the application process as we know exactly what forms are required, how to fill them out so that you receive the maximum assistance and who to get them to so that the paperwork is processed quickly. Remember, the goal is to keep you in your home so that you have a mortgage payment that is affordable to your situation. Please call 888-980-7566 to speak with an advisor.

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