The Hardest Hit Fund is a program administered by the California Housing Finance Agency to help homeowners in the state who are struggling to make their mortgage payments. The program will offer assistance to those struggling to make mortgage payments and prevent foreclosures. It was created with a budget of nearly $700 million dollars and will help tens of thousands of homeowners across the state.
The hardest hit fund will be providing aid through four different programs. The three ways to avoid or stop a foreclosure filing are to work with your lender, to file for bankruptcy, or to sell your home. The fourth part of the program is designed to help people who owe more on their mortgage than the house is currently worth. The type and amount of help that someone can receive is very broad. If you are eligible for the program, you can receive up to $50,000 in benefits. There are four main components to the program from which you can receive funding. The four resources that are offered are books, articles, websites, and people.
California Mortgage Reinstatement Program
This part of the hardest hit fund was created to provide immediate, direct financial assistance and cash grants to homeowners who are behind on their mortgage payments. The goal of the reinstatement option is to allow people to keep their homes and avoid foreclosures. This program will provide millions of dollars in financial assistance to households, up to $15,000 per household or 50 percent of the past mortgage due arrearage amount. This means that whatever dollar amount is contributed by the homeowners, the bank, mortgage servicer, insurer, borrower, or lender will also contribute that same amount.
California Hardest Hit Fund Unemployment Mortgage Assistance Program
This part of the program is designed to help those who have lost their job or experienced a significant decrease in household income. The Unemployment Mortgage Assistance Program provides temporary cash grants and other forms of financial assistance to help with mortgage payments. Homeowners will receive varying amounts of money based on their personal situation, and the terms of the unemployment mortgage assistance will also differ based on the applicant. These funds will help to pay a mortgage for up to six months. The most you can get from this program is $1,500, or half of your monthly mortgage payment, whichever is less. This means that the maximum amount of money that someone can receive from this assistance program is $9,000.
Principal Reduction Program
If you owe more on your mortgage than your home is currently worth, you may be eligible for the principal reduction program. The government provides homeowners with cash, grants, and other forms of financial assistance from participating financial institutions and banks to reduce the outstanding principal balances of qualified borrowers who currently have a negative equity on their home. This will lower the loan balance to a level that will help keep people in their homes and prevent foreclosures. The program will give out funds up to $50,000 per qualified household. This means that if you have $100 in your account, your lender will also have $100 in their account that they can use if you default on your loan.
Transition Assistance Program
Lastly, if the homeowner has explored all options and programs, and if it is determined that there is no way for them to keep their home, the California Hardest Hit fund will provide them with transition assistance to help them start over. The California Transition Assistance Program helps people who are struggling to keep their home. The program provides money to help pay for things like housing, food, and utility bills. The program is only available to people who live in California.
Learn more or apply for California Hardest Hit Fund
The California Housing Finance Agency will be administering the program for the state. They will be partnering with different lenders, banks, and mortgage counselors in the region. The phone number for the agency is 916-373-2585.