Tennessee's Hardest Hit Program

The Keep My Tennessee Home program provides payment assistance for homeowners who have fallen behind on their mortgage and are facing the possibility of foreclosure.

Important update: The Keep My Tennessee Home program is now closed. The program is no longer accepting new applications for any type of hardship.

The Keep My Tennessee Home program, which was funded through the Hardest Hit Fund, provided payment assistance for certain homeowners who had fallen behind on their mortgage and were facing the possibility of foreclosure. Keep reading to get an overview of how the program worked.

Hardest Hit Fund

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, $7.6 billion in aid was allocated to the 18 states, along with Washington, D.C., that experienced the most extreme home price declines and high unemployment rates as a result of the economic crisis. (Learn more about the Hardest Hit Fund.)

Tennessee was awarded over $217 million in funds through the Hardest Hit Fund to offer mortgage assistance to homeowners so they could avoid foreclosure. (Learn more about the Tennessee foreclosure process.)

To do this, Tennessee set up the Keep My Tennessee Home program.

Keep My Tennessee Home

The Keep My Tennessee Home program provided short-term assistance by making monthly mortgage payments on behalf of Tennessee homeowners who had fallen behind. The program offered up to $40,000 over 36 months.

This program partially closed as of the end of the day July 31, 2014, but for a while thereafter applications were still accepted for Tennessee homeowners who were having difficulty paying their mortgage due to either:

  • a long-term medical disability or
  • to being in the military.

This portion of the program is now closed to new applicants as well.

Free Foreclosure Prevention Counseling Is Still Available

If you are facing foreclosure, the Tennessee Housing Development Agency (the agency that administered the Keep My Tennessee Home program) offers free and confidential foreclosure prevention counselors. Go to www.keepmytnhome.org for more information.

How the Keep My Tennessee Home Program Worked

Assistance was provided in the form of a non-recourse, forgivable loan secured by a junior lien that was recorded against the property. The debt is reduced by 20% per year for every year you stay in the home after receiving assistance. At the end of five years, the debt is considered satisfied and the lien will be released.

You only need to repay the loan if you do one of the following things during the five-year forgiveness period.

  • You move out.
  • You sell the property and there are sufficient equity proceeds available.
  • You refinance and take cash out.

For More Information

If you would like more information about the Keep My Tennessee Home program, or to find out more about available foreclosure prevention counseling, you can:

To learn about federal programs designed to assist struggling homeowners, visit our Government Foreclosure Prevention Programs topic area.

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