Homeowners get help through Hardest Hit fund

Although the housing market seems to be going toward an upward economic trend, some homeowners still face serious financial concerns, particularly the threat of foreclosure.

But there is help available to residents, in the form of the Indiana Hardest Hit Fund.

“This is a federal grant and funds are distributed by the State of Indiana Housing and Community Development Authority to counseling agencies, such as City of Gary Community Development,” said Judith Samson, programs manager for the City of Gary and administrator for the Hardest Hit program. “The mission of the program is to provide monetary assistance for individuals who have experienced a hardship that was not their fault, or outside their control. Also, to educate homeowners of services/resources available and to help them make good choices and stabilize the communities.”

And in simple terms — it will help them save their homes.

That was the happy outcome for a homeowner from Winfield, who worked with Samson when she got behind on her mortgage payments.

After a series of work layoffs over the past seven years, she found herself unable to continue paying bills and the mortgage on her home.

“I was in dire straits, so my attorney provided me the information on this (Hardest Hit) program,” said the woman, who didn’t wish to use her name. “It only took about three weeks for processing and acceptance … and current mortgage payments to be made on my behalf to the mortgage company. This is a Godsend for those of us who have been hit really hard in this economy.”

She added that she feels “blessed” to have become aware of the assistance.

“It is with deep sentiment that I acknowledge the opportunity to have been exposed to this program, and I would offer anyone who has a situation where their income doesn’t meet their expenses, to take the time to apply,” she said.

If a homeowner has experienced a qualifying involuntary hardship, they may be eligible to receive assistance up to $30,000 in order to bring their delinquent mortgage payments current, or to reduce monthly mortgage payments to an affordable level.

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.

As part of this program, Indiana received over $221 million to provide assistance to homeowners who are at risk of defaulting on their mortgage payments or who face foreclosure.

A Lowell couple echoes those same thoughts as the Winfield homeowner, as the Hardest Hit Fund also helped them.

They found out about the program through the WorkOne unemployment office in Gary.

“We were in need of the program due to the company my husband worked for closed the doors this year, and he is currently unemployed,” said the Lowell woman, who didn’t want to use her name. “I am permanently handicapped due to a disease and do not receive any income at this time. Unemployment is not enough to even cover our utility bills, electric, water etc., let alone our mortgage payment.”

Samson guided the couple through the process, they were approved and have kept their home.

The couple also understands the stipulations placed on those who enter the Hardest Hit program.

“The only reason we would have to pay back the amount they have helped us with is if we move before the next 10 years,” the Lowell woman said. “The program goes by how long you remain at your residence after receiving approval. If you move within 1-5 years after receiving help from the program, then you must pay back 100 percent of the loan. Then, every year the amount goes down the longer you stay at your residence. At year six, you are responsible for 80 percent of the loan; year 7 you are responsible for 60 percent of the loan and so on. So by year 10, there is no payback amount.”

Similar to the Winfield resident that benefitted by the program, the Lowell couple also calls the experience a blessing.

“We were about to lose everything and our hope was gone….I advise anyone who is in risk of losing their home due to unemployment to apply. This program has saved our home and has allowed us to stay here in Lake County,” the Lowell woman said.

Samson initially applied for the program in May of 2013. She was awarded funds for 2013-2014, 2014-2015 and 2015-2016. She said the process for applying isn’t too involved.

“For the Counselor, it takes a couple of days, depending upon the homeowner,” Samson said. “Once all supporting documentation is submitted to the Counselor, it is uploaded to the system to an underwriter through the State of Indiana and submission to the lender/mortgage company. The lender/mortgage company could take up to 31 days. Most files are completed and ready for closing within 30 days.”

More Top Picks Best Side By Side Refrigerators

Sue Ellen Ross is a freelance writer for the Post-Tribune.

For more information

Call the Indiana Foreclosure Prevention Network toll-free hotline at (877) 438-4673; or locally at the City of Gary Community Development Division at (219) 881-5075, which serves Lake County homeowners.

Consumer Credit Counseling at (219) 980-4800 serves homeowners in Lake, Porter, LaPorte, Jasper, Newton, Starke and Pulaski counties.

Housing Opportunities Inc. at (219) 548-2800 serves homeowners in Porter, Jasper, Fulton, Starke, LaPorte, Newton and Pulaski counties.