Hardest Hit Fund (HHF) - Status and Current Alternatives
NOTICE: The Hardest Hit Fund (HHF) is officially closed. All original federal funding for HHF was exhausted or returned by the end of 2020. If you are a homeowner seeking financial assistance for a mortgage, property taxes, or utilities, you must now look to other options such as the Homeowner Assistance Fund (HAF) or HUD-certified counseling, which are still active - ongoing programs.
The Hardest Hit Fund was originally designed to assist 18 states and the District of Columbia during the 2008 housing crisis. While HHF provided billions in aid, it has been replaced by more modern initiatives. While direct financial help to pay for a mortgage is not common (often due to the cost) mortgage relief is primarily managed at the state level through grants, legal aid / mediation, charities and permanent non-profit housing networks.
HUD-Approved Housing Counseling
In general, your most reliable resource is a HUD-approved housing counseling agency. These non-profits provide free or low-cost expert advice on how to stop a foreclosure in progress. The extent and types of services vary, but most may offer some or all of the following.
- Foreclosure Intervention: Counselors work directly with your mortgage servicer to negotiate "Loss Mitigation" options. They help you prepare the financial packages required for loan modifications or forbearances.
- Service Availability: These agencies are permanent and do not depend on "emergency" funding like HHF did. They are available in every state and county. URL: https://www.hud.gov/findacounselor. In addition to that link, we also have a guide on HUD counseling agencies.
Loss Mitigation: Mortgage Relief Options
Even without a government grant, homeowners often have legal protections and "workout" options that can prevent the loss of a home. While regulations may vary by state and local community, in general many government organizations as well as courts require servicers to evaluate you for these options before proceeding with a foreclosure sale. HUD has a guide that was created which can be used in lieu of the Hardest Hit Fund ending - see URL: https://www.hud.gov/helping-americans/avoiding-foreclosure.
- Loan Modification: This permanently changes the terms of your mortgage. The lender may lower your interest rate, extend the term to 40 years, or move your past-due balance to the end of the loan to reduce your monthly payment.
- Partial Claims (FHA Loans): If you have an FHA-insured mortgage, you may qualify for a "Partial Claim," where HUD pays the lender a one-time amount to bring your mortgage current. You only repay this amount when you sell the house or pay off the mortgage.
- Forbearance Agreements: This is a temporary pause or reduction in mortgage payments. It is most effective for homeowners facing a short-term crisis (like a 3-month medical recovery) who expect to resume full payments shortly.
Non-Profit Foreclosure Prevention Networks
Several national non-profits provide specialized assistance for homeowners who do not qualify for federal grants but still face displacement.
- NeighborWorks America: This is a congressionally chartered non-profit that maintains a network of over 240 community development organizations. They offer specialized "Foreclosure Intervention" programs that provide one-on-one coaching to help you stay in your home. URL: https://www.neighborworks.org/.
- Homeowner’s Hope Hotline (888-995-4673): This is a 24/7 service operated by the Homeownership Preservation Foundation. It provides immediate access to experts who can guide you through the first steps of a mortgage crisis. URL: https://995hope.org/.
- Legal Aid for Homeowners: If your foreclosure has reached the "Judicial" stage (you have received a summons or court date), you should contact your local Legal Aid office (website: https://www.lsc.gov/grants/our-grantees). They provide free legal defense for low-income homeowners to ensure lenders have followed all state laws. We have a list and guide to free legal aid programs.
States
Every state has a different "sunset" date for HAF. Some are already closed. Visit the NCSHA (National Council of State Housing Agencies) website at https://www.ncsha.org/ to find the direct link to your specific state’s portal or look below for states information.
Alabama
Arizona
California
Florida
Georgia
Illinois
Indiana
Kentucky
Michigan
Mississippi
New Jersey
Nevada
North Carolina
Ohio
Oregon
Rhode Island
South Carolina
Tennessee
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