Legal Update: On March 11, 2021, President Joe Biden signed the American Rescue Plan Act into law. Part of this law created a Homeowner Assistance Fund to provide $10 billion to the states to help struggling homeowners catch up on housing-related expenses. Homeowner Assistance Fund programs have replaced Hardest Hit Fund programs in most states. Most Homeowner Assistance Fund programs are scheduled to last until 2025 or 2026 or until allocated funds run out.
In February 2010, the U.S. Department of the Treasury created the Hardest Hit Fund to provide millions of dollars to 18 states and the District of Columbia to help struggling homeowners avoid foreclosure. These states (and D.C.) each developed their own programs, which were administered by the state's housing finance agency, to distribute the funds and assist distressed homeowners. The programs provided various foreclosure avoidance options to homeowners, like mortgage payment assistance, reinstatement assistance, and second mortgage payoffs.
While the states had until the end of 2020 to utilize their Hardest Hit funds, some states ended their programs early because their allocated money ran out. In other states, programs remained open or reopened to help homeowners affected by the coronavirus (COVID-19) pandemic. In the chart below, you can learn which programs are open, though not many are.
If you think you might be eligible for a particular program that's still available, it's a good idea to apply for assistance soon as possible before the money runs out.
The states that received funds and set up Hardest Hit Fund programs are Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, and Washington, D.C.
Individual Hardest Hit Fund programs are likely to end as soon as their funds run out. Most have already shuttered. So, if you think you could qualify for a particular type of assistance through a specific program, you should submit an application immediately.
A few states that previously closed their Hardest Hit Fund programs when their funding ran out reopened when more money became available. If your state's program has closed, it's a good idea to keep tabs on the program website in case it reopens, most likely to help homeowners affected by the coronavirus pandemic.
With the provided funds, each state and the District of Columbia developed programs to help homeowners facing foreclosure. Generally, the programs involve:
Programs often change, so check your state's official website to find out what's available.
The homeowner typically receives assistance in the form of a 0% interest loan that is paid directly to the servicer. The loan is typically forgivable over a specified time period—meaning the homeowner won't have to repay it, so long as certain conditions are met—usually at a rate of 20% over five years.
Housing counseling is sometimes available through state programs at no cost, although homeowners in all states are eligible to get free help from a HUD-approved housing counselor.
Eligibility requirements vary widely from state to state and among different state-specific programs. But the requirements often include the following:
State | Are Programs Open? | Type of Available Assistance | Basic Eligibility Requirements | Maximum Amount of Assistance | State's Official Hardest Hit Fund Website |
Alabama |
No, closed to new applicants as of March 12, 2021. |
n/a | n/a | n/a | www.hardesthitalabama.com |
Arizona | Closed to new applications. |
n/a |
n/a |
n/a | https://housing.az.gov/save-our-home |
California | No | n/a | n/a | n/a | http://keepyourhomecalifornia.org/ |
Florida | No | n/a | n/a | n/a | www.floridaelmore.org |
Georgia | No |
n/a |
n/a |
n/a | www.homesafegeorgia.com |
Illinois | No | n/a | n/a | n/a | www.illinoishardesthit.org |
Indiana | No, applications are no longer being accepted for mortgage assistance from Indiana's Hardest Hit Fund. |
n/a. |
n/a |
n/a | www.877gethope.org |
Kentucky | No, but free financial counseling is available and some Kentuckians are eligible for free legal advice. | n/a | n/a | n/a | protectmykyhome.org |
Michigan | No |
n/a |
n/a |
n/a | www.stepforwardmichigan.org |
Mississippi | No | n/a |
n/a |
n/a | www.mshomesaver.com |
Nevada | No, the program has suspended accepting new applications. | n/a |
n/a |
n/a | https://nahac.org |
New Jersey | No | n/a | n/a | n/a | www.njhousing.gov/foreclosure |
North Carolina | No, but free housing counseling is available and you might qualify for legal assistance if your income is low. | n/a | n/a | n/a | www.ncforeclosureprevention.gov |
Ohio | No | n/a | n/a | n/a | https://savethedreamohio.gov |
Oregon | No, the mortgage relief program is now closed and not accepting any new applications. |
n/a |
n/a |
n/a | www.oregonhomeownerhelp.org |
Rhode Island | No | n/a | n/a | n/a | www.hhfri.org |
South Carolina | No | n/a | n/a | n/a | www.schelp.gov |
Tennessee | No | n/a |
n/a |
n/a | www.keepmytnhome.org |
Washington, D.C. | Yes | In an effort to support District residents during the coronavirus pandemic, the District of Columbia Housing Finance Agency (DCHFA) still offers some programs. | See program website for details. | See program website for details. | http://www.dchfa.org/homeownership |
Hardest Hit Fund programs change frequently, and determining whether you're eligible for a particular program can be a complicated process. Check your state's official website for updates and details about the application process. Additionally, you should be aware that not all lenders participate in every program.
If you have additional questions about the Hardest Hit Fund, make an appointment to talk with a HUD-approved housing counselor or call the phone number provided on the state's official Hardest Hit Fund website. If you need information about how foreclosure works in your state or possible defenses to a foreclosure in your situation, check out our sections on alternatives to foreclosure and fighting foreclosure in court, or consider talking to a foreclosure attorney.
Updated July 13, 2021