Indiana's Hardest Hit Fund

Indiana's Hardest Hit Fund programs can help struggling homeowners avoid foreclosure or get relocation assistance.

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. Additional funding was approved in 2016. As part of this program, Indiana originally received over $221 million to provide assistance to homeowners who are at risk of defaulting on their mortgage payments or who face foreclosure. Read on to learn about the different programs available through Indiana’s Hardest Hit Fund 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.)

Indiana’s Hardest Hit Fund Programs

Under Indiana’s Hardest Hit Fund, you may be eligible for mortgage payment assistance or transition assistance.

Mortgage Payment Assistance

If you have experienced a qualifying involuntary hardship, you may receive assistance up to $30,000 to bring your delinquent mortgage payments current or to reduce your monthly mortgage payments to a level that you can afford.  

Hardships that may qualify for assistance under the program include, but are not necessarily limited to:

  • loss of employment or reduction in employment income (must be involuntary)
  • a reduction in your household income due to the death of a household member
  • expenses related to medical procedures or emergencies (must be non-cosmetic)
  • divorce, or
  • military service.

Transition Assistance

If you are completing a short sale or deed in lieu of foreclosure (and you agree to leave the home in good condition), you may be eligible to receive $2,500 to assist with moving and relocation expenses. In addition, your lender or servicer can receive up to $5,000 to extinguish and release subordinate liens as part of the transaction.


To qualify for assistance, you must:

  • be an Indiana homeowner
  • have only one home (and you currently live in that home), and
  • be within the income eligibility requirements.

Also, you must be able to show that you are not able to afford your mortgage payment due to a qualifying involuntary financial hardship.

How Assistance Is Structured Under the Program

For mortgage assistance, homeowners get a loan that is forgiven over a certain period of years. Specifically, homeowners get a forgivable, non-recourse, non-amortizing loan. The loan is secured by a junior lien on the property. The loan term is ten years and is forgiven at a rate of 20% per year in years six through ten.

In the Transition Assistance Program, homeowners get a grant that does not have to be repaid.

How to Apply

To apply for relief under Indiana’s Hardest Hit Fund, go to, click on “Apply” and fill out the online form. You can also call the Indiana Foreclosure Prevention Network toll-free hotline 877-GET-HOPE (877-438-4673).

Free Financial Counseling

You can receive free foreclosure prevention counseling by calling 877-GET-HOPE (877-438-4673).

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