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.
- The Mortgage Payment Assistance component assists with eligible homeowners’ monthly mortgage payments are paid to the lender directly.
- The Recast/Modification Program assistance helps reduce qualified homeowners’ monthly first mortgage payment to an affordable level, allowing long-term sustainability of the mortgage.
- The Transition Assistance Program (TAP) prevent avoidable foreclosure and help stabilize neighborhoods by helping homeowners to achieve an orderly exit from their home by providing funds to lenders/servicers to extinguish and release subordinate liens as part of a short sale or deed-in-lieu of foreclosure agreement.
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.