Thousands of dollars in zero interest rate loans and/or cash grants may be available to homeowners in Alabama who have lost their jobs. A foreclosure prevention program known as Hardest Hit Alabama is available to unemployed Alabama homeowners or people who have had a reduction in their income, and the program is intended to help individuals and families catch up on paying their mortgages and it can help them avoid a foreclosure. The program is being funded by federal government dollars. The program is being administered by the Alabama Housing Finance Authority.
While it may be impossible to get the exact numbers, state officials can’t currently estimate how many people across the state are behind on paying their mortgages. However statistics in the past that were provided from the Alabama Housing Finance Authority, which was created to help low- and moderate-income Alabamians secure affordable housing, currently services 21,000 mortgages and 8 percent of those are behind, so that same 8 percent rate could possibly apply to other homeowners across the region.
The amount of help provided to qualified individuals is extensive. For example unemployed Alabamians who own homes throughout the state can qualify for loans and/or cash grants of up to $15,000 over a 12-month period. The funds will be used to help individuals pay their mortgages, and maybe the best part of the program is the fact that homeowners don't have to repay the money if they stay in their homes for five years.
The Alabama Hardest Hit program is now available to low to moderate income and other qualified out-of-work homeowners who currently qualify for unemployment compensation benefits. Some of the other criteria of the program include the applicant can’t owe more than $258,690 on their mortgages, and the homeowners most also have household incomes less than $75,700 annually.
The foreclosure prevention funds are being distributed by the state housing finance agency, which in this case is the AHFA.
The Hardest Hit Alabama fund will supply qualified unemployed homeowners with up to 12 monthly mortgage payments, or up to $15,000 per household, depending on which limit is reached first. To qualify for funds to pay your mortgage, applicants to the program need to have a total annual household income of less than $75,740 and in addition the unpaid principal balance on their home's mortgages must be less than $258,690. So the amount of help provided is very extensive, and at the end of the day the Hardest Hit Alabama will provide up to 12 monthly mortgage payments to people who need assistance, or $15,000, per household.
Some of the other criteria of the program include the fact that the homeowner needs to currently occupy the property they live in as their primary residence, and the home of course must be located in the state of Alabama. The home can’t be a family’s second home. Assistance from the hardest hit fund will be available for single-family homes, attached or detached, and even support is provided for manufactured housing that is attached to real property.
Applications for the program are only available online. Note that many public libraries have computers available to citizens who don't have them at home, so people can apply at public facilities as well. Visit www.ahfa.com.
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