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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. It's important to know that some states have already exhausted their Hardest Hit Funding.

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 badly.

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 that 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 you 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 a housing preservation expert may seem exorbitant, consider the alternative to winning your appeal for financial aid.