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
- Unemployment Mortgage Assistance (UMA) is monthly mortgage assistance for unemployed homeowners collecting unemployment benefits (EDD) from the State of California.
- The Mortgage Reinstatement Assistance Program (MRAP) is designed to assist homeowners who have fallen behind on their mortgage payments.
- The Principal Reduction Program (PRP) is a servicer-approved, one-time payment applied to eligible first mortgages in an effort to pay down the principal balance and allow for a more affordable monthly payment.
- The Transition Assistance Program is designed to assist homeowners undergoing a short sale or deed-in-lieu of foreclosure by assisting in a smooth transition into stable and affordable housing.
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.