Programs

General Eligibility

Household Income: For all options except Lien Extinguishment, the household income limit is $77,560 (including all occupants 18 years & older). The household limit to qualify for Lien Extinguishment is $55,500.

Mortgage Balance: $258,690 or less

Occupancy: Must be primary residence

Property: Single-family, attached or detached, and manufactured housing that is attached to real property

Location: Property must be located in the state of Alabama

Eligible Hardships: Unemployed, underemployed, receiving disability and/or social security


Amount of Assistance

The maximum amount of assistance per program is $30,000.

Homeowners may participate in only one component per program, with a maximum total assistance of $60,000.

Mortgage Payment Assistance Program

The Mortgage Payment Assistance program is available to eligible homeowners who have experienced an involuntary job loss and are receiving unemployment compensation benefits or have experienced a substantial reduction in household income. HHA will provide monthly mortgage payments including principal, interest and escrow expenses.

For unemployed homeowners
Homeowners who have received unemployment benefits on or after January 2013 are eligible for assistance. Funds will be disbursed to servicers as long as the homeowner is eligible for unemployment benefits. If unemployment benefits are exhausted, HHA will provide another 12 months of assistance. 

To help delinquent borrowers, HHA will pay the mortgage servicer to bring the mortgage current, not to exceed $12,500. Homeowners cannot have a past due balance that exceeds $12,500.

The maximum assistance per household is $30,000.

For underemployed homeowners
In order to be eligible as an underemployed homeowner, your household must demonstrate a financial hardship resulting in a 25% or greater reduction in total household income within the past 24 months.

Funds will be disbursed to servicers for up to 12 months.

To help delinquent borrowers, HHA will pay the mortgage servicer to bring the mortgage current, not to exceed $12,500. Homeowners cannot have a past due balance that exceeds $12,500.

The maximum assistance per household is $30,000.

For underemployed homeowners more than $12,500 past due
In order to be eligible as an underemployed homeowner, your household must demonstrate a financial hardship resulting in a 25% or greater reduction in total household income within the past 24 months.

A one-time disbursement of up to $30,000 will be made to fully reinstate the mortgage loan.

The reinstatement must result in a mortgage payment (including principal, interest, taxes, and insurance) of no more than 31% of the homeowner's income.


Loan Modification Assistance

The Loan Modification Assistance Program will provide funds to assist eligible financially distressed borrowers in achieving modification of their home loans.

Loan Modification/Recast

HHA will provide the assistance as a one-time distribution of funds to fill a financial gap that limits a homeowner's eligibility to qualify for a loan modification. Funds may be used to reduce the outstanding principal balance, pay delinquent escrow or past due payments, or recast the loan. To use the program, the mortgage servicer must approve the homeowner for the loan modification. 

The loan modification must result in a mortgage payment (including principal, interest, taxes, and insurance) of no more than 31% of the homeowner's income.

The program is designed to work with both HAMP and non-HAMP modifications.

The maximum assistance per household is $30,000.

Lien Extinguishment

Homeowners on a fixed income will receive up to $30,000 to pay off mortgage lien(s) on their home. 


Short Sale Assistance

The Short Sale Assistance Program assists eligible financially distressed homeowners with the sale of their primary residence.

The program is for homeowners who can no longer sustain their monthly mortgage obligation due to a hardship such as unemployment, underemployment, divorce, death or disability.

The mortgage servicer must approve the homeowner for a short sale. The homeowner must provide information documenting income, short sale approval, executed sales contract, the value of the property, and payoff statement(s).

Participating servicers must agree to accept a minimum loss of $1,000 on the first mortgage loan.

HHA's Short Sale Assistance Program will cover closing costs and any remaining principal amount—up to 10% of the sales price, not to exceed $30,000.