The housing and economic downturns of the past few years have certainly taken their toll. Across the country, millions of people have lost jobs, had their salaries significantly reduced, and watched helplessly as the values of their homes plummeted. The result is that many families owe more on their mortgages than their homes are worth. Millions have fallen behind on their payments and are facing foreclosure. According to the Obama Administration’s October Housing Scorecard, over 3 million mortgages were delinquent or seriously delinquent in the month of September. Over 70,000 received notices of foreclosure, and nearly 80,000 foreclosed properties were sold. There is help for people facing foreclosure, but how do you know if you qualify?In February, 2010, the Obama Administration created something called the Hardest Hit Fund. Its purpose was to provide assistance to families who were having trouble paying their mortgages and/or were at risk of being foreclosed on. The program is named “Hardest Hit” because it was intended to focus attention in those states that fared the worst in the economic and housing crises – in other words, those states with the highest unemployment, sharpest decline in home values, and highest instances of foreclosure.Eighteen states and the District of Columbia are included in the Hardest Hit program. Though the services offered vary by state, in general Hardest Hit programs offer both mortgage modification and payment assistance. Detailed information about the program is available via the U.S. Treasury Department’s web site.

Though thousands of homeowners are being helped by the Hardest Hit programs, it excludes a lot of people who are facing serious financial challenges. In an effort to help as many people as possible, the Obama Administration implemented a comprehensive program called Making Home Affordable, which includes several options for loan modifications. Each option has its own eligibility requirements, which you need to know if you’re planning to apply.

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