About the Hardest Hit Fund

Hardest Hit Alabama (HHA), a foreclosure prevention program, is available for homeowners struggling to pay their mortgage payments.
 
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 offers programs including mortgage payment assistance for unemployed homeowners, as well as loan modification and short sale options for borrowers facing financial hardships.

HHA assistance is available statewide to qualified homeowners on a first-come, first-served basis.

We offer several different programs to meet the needs of Alabama homeowners facing financial hardships:
  • Mortgage Payment Assistance
  • Loan Modification Assistance
  • Short Sale Assistance

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.

To help delinquent borrowers, HHA will pay the mortgage servicer to bring the mortgage current, not to exceed $12,500.

The maximum assistance per household is $25,000.
The Loan Modification Assistance Program will provide funds to assist financially distressed and/or underemployed borrowers in achieving modification of their home loans.

To use the program, the mortgage servicer must approve the homeowner for the loan modification. 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.

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.
The Short Sale Assistance Program assists 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.