Started by Governor Robert Bentley, Hardest Hit Alabama (HHA) is foreclosure prevention program which aimed at mainly helping the homeowners who were unable to return to work after the April 2011 tornadoes. As per this program, those who apply and qualify for this mortgage assistance, will either receive $15,000 per household or may receive assistance of up to 12 consecutive payments. Around 900 people have received assistance about the Hardest Hit Alabama mortgage help program.

The HHA program authorities are trying their level best help more people consider this as an option to save their property.  They are coordinating with  a number of other organizations to make people aware of this program so that people don’t lose their home.

This program is still on and if you want to learn more about the program and its qualifying criteria, then you can take a look at “hardesthitalabama.org”. In order to take advantage of this program, you don’t have to pay a fee.

The Obama administration has come up with new guidelines for the foreclosure prevention program. It concentrates mainly on how to deal with borrowers who have home-equity loans or other second mortgages.

Most of the borrowers who are delinquent on their mortgage payments also have a second mortgage. However, when the Government announced the $75 billion program to stabilize the housing market, it didn’t concentrate on the question of second mortgages. Thus, the Government has come up with the revised plan which makes it necessary for the lenders to modify the second mortgage when the first mortgage is reworked. The lender’s benefit is that the government will share in the cost of reducing the interest rate on second mortgages for 5 years or it will pay the borrowers to extinguish that debt.

Lenders who will modify 2nd mortgages will receive an upfront payment of $500 and additional payments of $250 a year for up to three years for successful modifications for second mortgages. Apart from this, the borrowers who will be current on the modified loan would receive payments of $250 a year for up to five years. This would be used to pay down the balance of their 1st mortgage.

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