Bentley announces new program to aid struggling homeowners | Families
Some Alabama homeowners struggling to avoid foreclosure will soon receive financial assistance, thanks to the creation of HHA—or Hardest Hit Alabama.
Governor Robert Bentley announced the creation of the new program Wednesday in Montgomery, which will provide $162 million to prevent further foreclosures in Alabama.
The funds come from the $2 billion the U.S. Department of Treasury allocated in August of last year to help unemployed or underemployed homeowners avoid foreclosure.
Bentley says this temporary help for Alabamians will help many keep their homes until they can find a job.
“Record foreclosures and continued high unemployment are causes for concern for our state,” Bentley said in a statement. “Homeowners who have experienced a temporary loss of income can benefit from short-term assistance to help bridge the gap until they have restored their income.”
The program will offer 12 monthly mortgage payments or $15,000 per household. In order to apply for assistance, homeowners must have already been declared eligible by the Alabama Department of Industrial Relations to receive state unemployment benefits.
Run through the Alabama Housing Finance Authority, the HHA program is designed to help families that have been affected by tough times, rather than those unwilling to look for work, says AHFA Director Robert Strickland.
“Responsible families across the state have found themselves unable to pay their mortgages due to joblessness,” Strickland said. “These homeowners are generally not eligible for loan modifications, putting them at substantial risk of mortgage default and foreclosure.”
Applicants may apply at HardestHitAlabama.com or by calling 1-877-497-8182.
To qualify, applicants must:
-Currently have a total household income of less than $75,740
-The unpaid principal balance on their home’s mortgages must be less than $258,690
-The homeowner must currently occupy the property as their primary residence
-The home must be located in Alabama
-Assistance will be available for single-family homes, attached or detached, and manufactured housing attached to real property.