Tennessee Hardest Hit Fund

The state of Tennessee is using federal government funds to create the Tennessee Hardest Hit Fund. Mortgage assistance will be provided to homeowners who have had a reduction in income or who are struggling with paying their mortgage.

This can include underemployed homeowners who are now struggling with paying unaffordable mortgages as the result of a decrease in income that was outside of their control, such as a job loss, reduction in hours, or medical condition. Aid can also be provided to people who have had an uncontrollable increase in household expense.

In addition, under certain condition, mortgage assistance can be provided to unemployed Tennessee homeowners who, through no fault of their own, are unable to make their mortgage payments for a myriad of issues and who are in danger of losing their homes to a foreclosure filing.

The fund will help homeowners while they look for a new job or some other method to increase their income. For example, financial assistance can be provided to assist homeowners while they complete an education program or job training class that will enhance their job skills and provide them with further career opportunities. In addition, the Tennessee hardest hit fund will assist homeowners who are re-employed but need additional time or some other help to bring their mortgage current.

Mortgage assistance provided by the Tennessee Hardest Hit Fund

The Tennessee Housing Development Agency will be working with local agencies across the state to administer the program.

 

 

 

The hardest hit fun will provide homeowners with a 0% interest, non-recourse, deferred-payment, subordinate loan that will be forgiven after 5 years by the state. So that means the borrower can use the loan to pay their mortgage, and they will not incur additional interest expense.

The funds provided from the loans will pay the borrowers monthly mortgage and other mortgage-related expenses (i.e., homeowner insurance, property taxes, and even homeowner dues) while the homeowner seeks employment or trains for a new job.

In addition, loan funds can also help pay for past-due mortgage payments (arrearages).

In total, applicants to the program can receive up to $20,000 in loans from the hardest hit fund, depending on what county they live in.

If someone is accepted into the program. the local agency that administers the program for the homeowner will male payments directly to the loan Servicer, not to the borrower. The following types of mortgage assistance will be made available to the homeowner.

Tennessee Hardest Hit Fund contact information

Various local non-profit agencies and organizations will run the hardest hit fund for the Tennessee Housing Development Agency. Find a listing of Tennessee HUD foreclosure counseling agencies, or call the main phone number of 1-855-890-8073.

 

 

 

 

 

 

 

 

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