Alabama Governor Robert Bentley recently announced the creation of Hardest Hit Alabama (HHA), a new program that will provide $162 million for foreclosure prevention efforts in the state.
In August 2010, the U.S. Department of Treasury announced $2 billion in federal funding to provide additional assistance targeted at unemployed homeowners in states with the highest jobless rates. The Alabama Housing Finance Authority (AHFA) has been allocated $162 million to provide temporary assistance to unemployed or underemployed homeowners in the state to help them stave off foreclosure while they search for work.
“Record foreclosures and continued high unemployment are causes for concern for our state,” said Gov. Bentley. “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. This assistance is designed to help families stay in their homes until they can they find employment.”
Eligible homeowners will receive assistance to pay mortgage payments and other mortgage-related expenses while unemployed or underemployed. HHA will provide up to 12 monthly mortgage payments, or $15,000, per household.
Alabama homeowners must be declared eligible by the Alabama Department of Industrial Relations to receive state unemployment compensation benefits. To qualify, applicants must currently have a total annual household income of less than $75,740, and 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.
“Responsible families across the state have found themselves unable to pay their mortgages due to joblessness,” said AHFAexecutive director, Robert Strickland. “These homeowners are generally not eligible for loan modifications, putting them at substantial risk of mortgage default and foreclosure.”
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