When the housing market crashed in 2007, millions of homeowners faced the risk of foreclosure as a result of declined property values and high unemployment rates. The worst part of the crisis lasted until 2009, and a year later the Obama administration launched the ‘Hardest Hit Fund’ to help those impacted the most.
The housing finance agencies that participate in the program have implemented a number of initiatives that help struggling homeowners recover from the crash. As of today, 18 states and the District of Columbia are taking advantage of the program.
What Kind of Help is Offered Through the ‘Hardest Hit Fund’?
Since each state’s Housing Finance Agency designs and administers its own HHF programs, all of them vary and are specifically tailored to the region they’re meant to help. No matter the variations in the programs by state, the purpose of each is to aid two types of people: unemployed homeowners who hope to remain in their home while searching for work; and homeowners who owe more to their mortgage lender than what their home is worth. The HHF has provided $7.6 billion in relief.
The most common programs associated with the HHF include:
- Mortgage payment assistance
- Principal debt reduction
- Second lien loan elimination
- Transition assistance
How Long Will the ‘Hardest Hit Fund’ Offer Help to Homeowners?
Each state’s participating Housing Finance Agency has until the end of 2017 to use the funds that were allocated by the government. According to the Department of the Treasury’s second quarter performance summary in 2015, there are 74 active programs helping homeowners across all 19 HFAs, and about $5.1 billion of the allocated funds – or 76 percent of the program cap – have been used for aid.
Stephen K. Hachey, a Florida real estate attorney, can help your wade through this process and determine a positive solution. Contact him at 866-200-4646.
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