Hardest Hit Alabama (HHA)- Foreclosure prevention program- Alabama
- Listed: August 28, 2018 6:22 pm
- Expires: 97721 days, 12 hours
Description
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About the Hardest Hit Fund
Hardest Hit Alabama (HHA) is a foreclosure prevention program that helps eligible homeowners facing temporary financial hardships keep their home. Sometimes through no fault of their own, homeowners run into financial difficulty – a lost job or unexpected medical expense happens – and they find themselves struggling to make their mortgage payment.
The State of Alabama was allocated approximately $162 million to provide assistance for financially distressed homeowners. The U.S. Department of Treasury’s “Hardest Hit Fund” is authorized under the Emergency Economic Stabilization Act of 2008 and is available in 18 states and the District of Columbia.
HHA offer several different programs available statewide to qualified homeowners on a first-come, first-served basis.
*All HHA programs are subject to change. Please refer to the Treasury website for the most current Term Sheet or call HHA for more information.
Program Exclusions
- homeowners in an active bankruptcy
- homeowners convicted for mortgage-related felonies
- homeowners with rental property
- seller-financed properties
- second homes
General Eligibility
Household Income: For all options except Lien Extinguishment, the household income limit is $77,700 (including all occupants 18 years & older). The household limit to qualify for Lien Extinguishment is $55,500.
Mortgage Balance: $258,690 or less
Occupancy: Must be primary residence
Property: Single-family, attached or detached, and manufactured housing that is attached to real property
Location: Property must be located in the state of Alabama
Eligible Hardships: Unemployed, underemployed, divorce, death of a spouse, medical hardship, and/or disability
Amount of Assistance
The maximum amount of assistance per program is $30,000.
Homeowners may participate in only one component per program, with a maximum total assistance of $60,000.
Mortgage Payment Assistance Program
The Mortgage Payment Assistance program is available to eligible homeowners who have experienced an involuntary job loss and are receiving unemployment compensation benefits or have experienced a substantial reduction in household income. HHA will provide monthly mortgage payments including principal, interest and escrow expenses.
If you have previously received Mortgage Payment Assistance (unemployment or underemployment) from HHA, you are not eligible for additional assistance under this portion of the program. However, you may be eligible for other HHA program options.
For unemployed homeowners
Homeowners who have received unemployment benefits on or after January 2013 may be eligible for assistance. Funds will be disbursed to servicers for up to 12 months, not to exceed $30,000.
For underemployed homeowners
In order to be eligible as an underemployed homeowner, your household must demonstrate a financial hardship resulting in a 15% or greater reduction in total household income within the past 24 months.
Funds will be disbursed to servicers for up to 12 months, not to exceed $30,000.
To help delinquent borrowers, HHA will pay the mortgage servicer to bring the mortgage current, not to exceed $12,500. Homeowners cannot have a past due balance that exceeds $12,500.
The maximum assistance per household is $30,000.
For underemployed homeowners more than $12,500 past due
In order to be eligible as an underemployed homeowner, your household must demonstrate a financial hardship resulting in a 15% or greater reduction in total household income within the past 24 months.
A one-time disbursement of up to $30,000 will be made to fully reinstate the mortgage loan.
The reinstatement must result in a mortgage payment (including principal, interest, taxes, and insurance) of no more than 38% of the homeowner’s income.
Loan Modification Assistance
The Loan Modification Assistance Program will provide funds to assist eligible financially distressed borrowers in achieving modification of their home loans or payoff of their mortgage liens.
Loan Modification/Recast
HHA will provide the assistance as a one-time distribution of funds to fill a financial gap that limits a homeowner’s eligibility to qualify for a loan modification. Funds may be used to reduce the outstanding principal balance, pay delinquent escrow or past due payments, or recast the loan. To use the program, the mortgage servicer must approve the homeowner for the loan modification.
The loan modification must result in a mortgage payment (including principal, interest, taxes, and insurance) of no more than 31% of the homeowner’s income.
The program is designed to work with both HAMP and non-HAMP modifications.
The maximum assistance per household is $30,000.
Lien Extinguishment
Homeowners on a fixed income will receive up to $30,000 to pay off mortgage lien(s) on their home (excludes HELOC and reverse mortgages).
Short Sale Assistance
The Short Sale Assistance Program assists eligible financially distressed homeowners with the sale of their primary residence.
The program is for homeowners who can no longer sustain their monthly mortgage obligation due to a hardship such as unemployment, underemployment, divorce, death or disability.
The mortgage servicer must approve the homeowner for a short sale. The homeowner must provide information documenting income, short sale approval, executed sales contract, the value of the property, and payoff statement(s).
Participating servicers must agree to accept a minimum loss of $1,000 on the first mortgage loan.
HHA’s Short Sale Assistance Program will cover closing costs and any remaining principal amount—up to 10% of the sales price, not to exceed $30,000.
1.
APPLICATION – All applications must be completed online. Click
hereto begin your application. Before you begin, please have your mortgage loan information and financial information available. Check the
Resources to verify if your servicer is an active HHA participant.
2.
REQUIRED DOCUMENTS – After submitting your application, you will be provided a list required documents that you must provide before your application can move forward. An HHA counselor will be assigned to you in order to assist you during the process. Required documents are:
- Copy of Monthly Statement(s) for all Mortgages
- Copy of Bankruptcy Discharge Papers (if applicable)
- Documentation of Unemployment Income
- Statement from DIR, or
- Bank Statements showing the amount received (30 days)
- Income Documentation for All Household Occupants
- Past two years’ W-2 forms and complete federal tax returns (1099’s if applicable)
- Pay stubs to cover most recent 30 days
- Self-Employed Occupants:
- Past two years’ executed federal tax returns
- Year-to-date Profit & Loss statement
- Documentation of Other Sources of Income (child support, alimony, Social Security income, etc.)
- Copy of Deed/Mortgage
- Copy of Driver’s License (front and back)
- Additional information may be required
Within the application, there are also forms you must complete. These include:
- Third Party Authorization Form for each servicer
- Monthly Occupancy Statement
- Department of Labor Authorization Form
- Eligible Homeowner’s Affidavit
- HHA Affidavits
- Form 4506-T
- Additional information may be required
3.
APPLICATION REVIEW -When all documents are submitted, your application will progress to the underwriting stage. During the underwriting stage, the HHA underwriters will:
-
- Review your application to be sure it meets all HHA program requirements (income limits, UPB limits, etc.).
- Verify unemployment benefits if necessary.
- Order property verifications.
- Verify the loan balance and status with the mortgage servicer.
4.
LOAN CLOSING – Once the application is approved, the loan closing will be scheduled. After the loan closing, please allow 7-10 business days for verification of required loan closing documents before disbursement will begin.
5.
AFTER THE LOAN CLOSING – After the loan closing, you are responsible for completing and sending a Monthly Occupancy Statement to your HHA counselor. HHA benefits will end after 12 months or when assistance has reached the maximum assistance limit of $30,000.’
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