In February 2010, the U.S. Department of the Treasury created the Hardest Hit Fund to provide targeted aid to homeowners facing a foreclosure in particular states, like Indiana. Indiana closed its Hardest Hit Fund program to new applicants in 2017, but one program—the reinstatement assistance program—reopened on July 1, 2018.
The government created the Hardest Hit Fund to give billions of dollars in aid money to particular states, including Indiana, which experienced the most extreme home price declines, high rates of foreclosures, and above-average unemployment rates during the Great Recession. The money was earmarked to go towards helping homeowners who were struggling financially.
Which states have Hardest Hit Fund programs. The following states received money from the federal Hardest Hit Fund: Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, and the District of Columbia.
How do the states’ Hardest Hit Fund programs work? To distribute their allocated money to homeowners who need help avoiding a foreclosure, the states (and D.C.) that received funding set up their own Hardest Hit programs. The programs are different from state to state, but typically provide money to:
Indiana’s Hardest Hit Fund program, which is administered by the Indiana Foreclosure Prevention Network (IFPN), stopped accepting applications after June 30, 2017. As of July 1, 2018, though, the state’s reinstatement program reopened to new applicants. This program provides as much as $30,000 to help homeowners prevent a foreclosure by reinstating the loan.
To qualify, you must be an Indiana homeowner who’s fallen behind in payments because of an involuntary loss of employment or reduction in your employment income. (To learn more about the program, including additional eligibility requirements, see Foreclosure Prevention Program in Indiana.)
To apply for reinstatement assistance in Indiana and get details about eligibility requirements, go to the IFPN website or call 877-GET-HOPE (877-438-4673) from 8:30 a.m. to 4:30 p.m., Monday through Friday.
Effective date: July 1, 2018