The state of Ohio is offering mortgage assistance from the hardest hit fund. The federal government is providing almost $200 million in aid, and it is expected that tens of thousands of homeowners may be able to receive help with paying their home loans.
To date, ten states across the nation have participated in the program. The hardest hit fund program was created to help states across the country where unemployment rates have climbed the most, and where people are facing the most financial hardships.
This is the government agency that will administer the program in the state. Through this new plan, the state plans to provide services and resources to those in need of help with housing expenses. The primary goal of the program will be to help those people who need help and that were previously not able to qualify for assistance programs due to any number of circumstances.
The Ohio Hardest Hit Fund has four main components. Learn more about each one below. However, at the end of the day, one of the primary objectives of the state of Ohio’s plan is to offer mortgage help and prevent foreclosures to unemployed borrowers, people who have faced an unexpected emergency, and help to those who can’t refinance their home loan because they are currently under water on their home loan. Assistance is provided to those borrowers who owe to their bank or lender more than their home is worth.
Many studies and government officials say that those two troubled groups of borrowers are at the highest risk of defaulting and facing a foreclosure on their home, and these borrowers are not generally eligible for loan modifications or are not eligible to receive help from the federal government’s Making Home Affordable program. Learn more on getting help if your home loan is underwater and short sales.
-Receive partial home loan/mortgage payment assistance: This funding will help unemployed homeowners who generally have not been eligible for a loan modification, either from the federal government or a bank, and are a high risk of mortgage default or filing a foreclosure.
-Rescue payment assistance: To help Ohio homeowners who have already been late on or who have missed one or more mortgage payments and are at a high risk of foreclosures and losing their homes.
-Transitional assistance program: Homeowners in Ohio who can no longer sustain their monthly mortgage payments, even without aid, can receive help from this option to make the transition out of their home easier. The assistance program offers incentives to banks, lenders, and servicers to complete short sales and deed-in-lieu agreements to help homeowners exit their homes. The program will also limit the impact on their credit rating so as to limit future harm.
-Loan modification assistance with principal reduction: The Ohio hardest hit fund can help land loan modifications for those borrowers who cannot afford their current mortgage payment but owe more than their home is currently valued. Click here for more on principal reduction.
If you would like to learn more, to to apply for mortgage assistance from the Ohio hardest hit fund, call the state government hotline at (888) 404-4674.
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