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The foreclosure crisis starting around 2007 bore from it a slew of legislation which attempted to help borrowers facing imminent foreclosure or the loss of their home due to foreclosure. One such piece of legislation was the Troubled Asset Relief Program, or TARP. In February of 2010, the United States Treasury established the Hardest Hit Fund in an effort to provide targeted financial aid to states hit most significantly by the subprime mortgage crisis.
Indiana is one of 19 states that received money from the U.S. Treasury to fund its Indiana Hardest Hit Fund (“the Fund”). Over the course of its run since 2010, Indiana received more than $283 million for the Fund, which was a program run by the Indiana Housing and Community Development Authority (IHCDA). The final deadline for accepting applications for the fund ended on May 3, 2021. The program provided eligible borrowers with up to $30,000.00 to reinstate their mortgage loans (see 877gethope.org). The Indiana Foreclosure Prevention Network boasts that it has provided over $182 million to over 11,000 Hoosiers in the State.
Even with the end of the Indiana Hardest Hit Fund, not all hope is lost for borrowers in need. Hoosiers facing financial difficulties in struggling to pay for their home mortgage will soon have a new option. The past year, the economic impact from COVID-19 has prompted a new financial crisis for some borrowers, and a new round of financial legislation designed to help borrowers. Through the American Rescue Plan Act of 2021(ARPA), Indiana has been allocated $167.9 Million for its Homeowner Assistance Fund to help homeowners who were negatively impacted by COVID-19. This new mortgage assistance program is currently under development (see 877gethope.org). Although, according to the website, the program is not yet taking applications as of June 1, 2021, help is soon on the way. For lenders and servicers who may not have other available options for borrowers, directing them to the Indiana website of 877gethope.org may provide alternative options.
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