About the Hardest Hit Fund

Hardest Hit Alabama (HHA), a foreclosure prevention program, is available for eligible 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.

We offer several different programs to meet the needs of Alabama homeowners facing financial hardships:
  • Mortgage Payment Assistance
  • Loan Modification Assistance
  • Short Sale Assistance
HHA assistance is available statewide to qualified homeowners on a first-come, first-served basis. 

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.

The maximum assistance per household is $30,000.

For unemployed homeowners
Homeowners who have received unemployment benefits on or after January 2013 are eligible for assistance. Funds will be disbursed to servicers as long as the homeowner is eligible for unemployment benefits. If unemployment benefits are exhausted, HHA will provide another 12 months of assistance. 

For underemployed homeowners
In order to be eligible as an underemployed homeowner, your household must demonstrate a financial hardship resulting in a 25% or greater reduction in total household income within the past 24 months.
The Loan Modification Assistance Program will provide funds to assist eligible financially distressed borrowers in achieving modification of their home loans.

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 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. 
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.