Rhode Island’s Hardest Hit Fund program, called “Hardest Hit Fund - Rhode Island” or “HHFRI,” provides financial assistance to homeowners who meet eligibility criteria so they can save their home from foreclosure. If you qualify for the program, you can get money to:
To learn more about each of these types of assistance, read on.
The U.S. Department of the Treasury organized the federal Hardest Hit Fund in 2010 to provide money to certain states that were severely impacted by the foreclosure crisis occurring at that time. As part of this program, the government allocated $7.6 billion in aid to 18 states, like Rhode Island, as well as Washington D.C., which had suffered significant home price declines and high unemployment rates because of the economic downturn.
To begin with, Rhode Island got over $79 million from the fund to help eligible homeowners avoid foreclosure. More funding came through in 2016.
HHFRI offers four forms of assistance.
This program provides financial assistance so the homeowner can catch up on overdue mortgage payments, property taxes, insurance, HOA fees, or other expenses related to the home.
Under this program, funds are used to assist in getting the homeowner a loan modification, which will result in a more affordable monthly payment.
In this program, funds go towards paying the homeowner's monthly mortgage payment. The homeowner has to pay part of the payment as well.
This program provides financial help to people who have a reverse mortgage and facing foreclosure due to unpaid property taxes, HOA fees, insurance, or other property-related charges.
Each assistance program has its own eligibility requirements, which sometimes change. (Go to the HHFRI eligibility webpage to take a quiz and find out if you’re eligible.)
Generally, to get assistance from HHFRI, you must meet the following basic eligibility requirements:
Deployed members of the U.S. Armed Forces, or those who have been discharged within the last year, who have experienced a reduction in income are eligible.
To get more information about HHFRI or submit an application, go to the main HHFRI website.
If you need information about the Rhode Island foreclosure process or want to learn about possible defenses to a foreclosure in your situation, consider talking to a foreclosure attorney. If you want to learn more about different alternatives to foreclosure, including loan modifications, short sales, and deeds in lieu of foreclosure, make an appointment to talk with a HUD-approved housing counselor.