HFA HARDEST HIT FUND PROGRAM – Tax Overview- Part 1

by Property Management on February 28, 2011

Federal Housing Finance Agency

Federal Housing Finance Agency

In February 2010, the United States Department of the Treasury (Treasury Department) established the HFA Hardest Hit Fund, which is authorized by section 109 of the Emergency Economic Stabilization Act (EESA), Division A of Pub. L. 110-343, 112 Stat. 3774 (2008). The purposes of the HFA Hardest Hit Fund are to provide funds to the State Programs (1) to assist homeowners in preventing avoidable foreclosures, and (2) to stabilize housing markets. The HFA Hardest Hit Fund is designed to allow each State HFA maximum flexibility in designing locally  focused programs to address the needs of financially distressed homeowners within the state or a specific region of the state. Each of the State Programs that receives funding from the HFA Hardest Hit Fund has as its primary objective preventing avoidable foreclosures of homeowners’ homes and stabilizing housing markets.
The HFA Hardest Hit Fund is available in states where either housing prices have declined more than 20 percent from peak prices or the unemployment rate equals or exceeds the national average. The states eligible for this funding are Alabama, Arizona, California, the District of Columbia, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, and Tennessee.

To receive funding from the HFA Hardest Hit Fund, each of these states submitted proposals describing its programs and verifying that each of the programs would meet the requirements of the EESA and the purposes of the HFA Hardest Hit Fund. Funding under the HFA Hardest Hit Fund is available for, but not limited to, programs involving the following transactions: mortgage modifications, principal forbearance to facilitate additional mortgage modifications, short sales and deeds-in-lieu of foreclosure, unemployment programs, principal reductions for homeowners with severe negative equity, and second-lien reductions and modifications.

Source: House Finance Agency, February 2011

{ 3 comments… read them below or add one }

mtgfactsman March 16, 2011 at 3:17 pm

I called to speak with a Rep regarindg the California Hardest HIt Fund to see if I was eligible. I was told since I refinanced my Mortgage back in 2005 I was not eligible for the Program. I asked the Rep if there was any Program available for Homeowners who need assitance with thier Mortgage due to loss of income and I was told that only Homeowners who never refinanced their Mortgage in the past were eligible for assistance. So the 18 Homeowners who still have their original Purchase Mortgage can call and find out what assistance they can get. However, the tens of millions of us who refinanced in the past to get a lower rate or pay off other debt are out of luck. It will be interesting to see how much of the $2 billion California received from the Govt to help Homeowners who truly need it and how much goes to line the pockets of those in control of the funds. Based on the 18 Homeowners who are eligible for the Program their entire Mortgage should be paid off based on the funds available compared to the Homeowners who are eligible. This Program is just another example of window dressing by the Govt, but that should come as no shock to anyone.

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carol July 10, 2011 at 10:39 am

I’d been in a process of loan modification with the bank 9 times, last week they told me I have not followed the steps the “gov. programs ” explain to help. I did them all , now they told me to find out about this, when they told me I did not qualify, the reason , never told! . When reading your notes I think I do not qualify anyway if I had refinanced. yes I did in 2006, so what is the help????? where to go???

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Pat April 21, 2012 at 1:30 pm

This program is a joke in NJ too. As mtgfactsman said, I believe it’s smoke and mirrors and a way to transfer some remaining TARP money to the states are their cronies. NJ is doing mostly nothing, but clsaimed they needed $38,500,000 in expenses to administer the program – including a new building. It’s fraud at its finest. I found lots of comments from applicants on this site: http://www.newjerseyhomekeeperprogram.info

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