Oregon's Hardest Hit Program: Homeownership Stabilization Initiative

The Oregon Homeownership Stabilization Initiative provides options to avoid foreclosure.

In 2010, the U.S. Department of the Treasury created the Hardest Hit Fund to provide targeted aid to homeowners in those states most affected by the housing market crash. As part of this program, Oregon received over $220 million to provide assistance to struggling homeowners. Additional funding was approved in 2016. Read on to learn about the different types of help available through Oregon’s Hardest Hit Fund program, called the Oregon Homeownership Stabilization Initiative (OHSI), and find out if you may be eligible for assistance. (To learn more about the Hardest Hit Fund and the various state programs funded by it, visit our Hardest Hit Fund topic page.)

The Oregon Homeownership Stabilization Initiative (OHSI)

OHSI has several programs to assist Oregon homeowners. The programs are:

  • The Home Rescue Program, which provides up to one year of mortgage payments (and reinstatement assistance, if needed.)
  • The Loan Refinancing Assistance Pilot Project (LRAPP), which assists underwater homeowners refinance their loan.
  • The Rebuilding American Homeownership Assistance Pilot Program (RAHAPP), which also provides an opportunity for underwater homeowners to refinance their mortgage.
  • Homeowner Education and Verification (HEV) program, which is an educational tool for homeowners.
  • Loan Preservation Assistance (LPA), which helps those who can afford their mortgage payment, but are behind on their first lien mortgage due to a financial hardship; those who have fallen behind on county property taxes (but can afford the taxes in the future); or those who have a reverse mortgage but are behind in certain charges (taxes, insurance, and HOA fees).

Home Rescue Program

If you're eligible, this program provides up to one year of mortgage payments, up to $20,000, and if needed, up to $15,000 in funds to bring the loan current.

Loan Refinancing Assistance Pilot Project (LRAPP)

This program provides a refinancing opportunity for underwater homeowners in Crook, Deschutes, Jackson, Jefferson, and Josephine counties.

Rebuilding American Homeownership Assistance Pilot Program (RAHAPP)

RAHAPP aims to provide an opportunity for underwater homeowners to refinance their mortgage. The program provides two refinancing options:

  • 15-year mortgage at 4% fixed interest, APR 4.129%.
  • 30-year mortgage at 5% fixed interest, APR 5.077%.

Homeowner Education and Verification (HEV)

This program is designed to provide program participants with the tools and information that will help them make the most of their assistance.

Loan Preservation Assistance (LPA)

There are three programs under LPA:
  • Preservation Benefit. This program is geared towards homeowners who can make their mortgage payment, but are delinquent (overdue) on their first lien mortgage due to a financial hardship. Under the program, the loan is reinstated with a one-time payment to the lender (up to $40,000).
  • Property Tax Benefit. This program helps eligible homeowners who own their homes (this means that there are no mortgage liens on the property at all), but are behind in county property taxes due to a hardship, and can afford to pay the taxes in the future. Homeowners can get up to $40,000.
  • Reverse Mortgage Benefit. This program is for homeowners with a reverse mortgage–a Home Equity Conversion Mortgage (HECM)–and who are behind due to certain charges (including taxes, insurance, and HOA fees) advanced by their lender. Funds (up to $40,000) are paid directly to the lender.

How to Apply

Go to www.oregonhomeownerhelp.org, and then “Programs” to select the program you are interested in.

For More Information

If you would like more information about OHSI or its programs, call (503) 986-2025 or email homeowner.help@oregon.gov.

To learn about federal government programs for struggling homeowners, visit our Government Foreclosure Prevention Programs topic area.

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