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 (MPA) is a monthly assistance program available to eligible underemployed or unemployed homeowners.
- The Rescue Payment Assistance (RPA) program is a servicer-approved lump sum payment to the servicer to bring the first mortgage current.
- The Mortgage Modification with Contribution Assistance (MCA) program is a servicer-approved lump sum payment to the servicer to reduce the principal balance of the mortgage to make it more affordable.
- The Homeownership Retention Assistance (HRA) program is designed to reduce or eliminate the homeowners’ second lien, property taxes, and/or association fees.
- The Transition Assistance program assists homeowners in relocation in connection with an approved short sale or deed-in-lieu.
- The Lien Elimination Assistance program is a lump sum payment to the servicer to extinguish a first mortgage lien.
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.