Frequently Asked Questions


What is the Hardest Hit Alabama program?

It is a federally funded loan program designed to help eligible homeowners who are struggling to make their mortgage payments.


Is this assistance coming out of the State of Alabama's budget?

No. These funds have been provided to states hit hardest by unemployment by the United States Department of Treasury to assist homeowners to avoid foreclosure.


Do I have to repay the assistance?

You may have to repay all or a portion of the assistance if:
  1. You no longer occupy the property as your primary residence before the end of the recapture period.
  2. You sell the property and there is sufficient equity to pay all or a part of the unforgiven balance.
  3. If fraud is found, the total assistance amount must be repaid.

Will the program negatively affect my credit?

Your existing lender/servicer must continue to report factual information to the credit bureaus regarding the standing of your mortgage. If you were approved for a Hardest Hit Alabama program, HHA does not report any information to the credit bureaus.


Should I call the HHA call center for questions concerning my application?

Due to the number of phone calls anticipated, we recommend you email your counselor directly with any questions you may have concerning the process.


What happens if a homeowner decides to sell the property while in the disbursement phase of the program?

At the time of sale, disbursements will stop and a recapture provision may apply.


What happens if a homeowner decides to sell the property while in the monitoring phase of the program?

The recapture provision may apply.


Can I still refinance my primary mortgage if I was approved for this program?

Yes. HHA will consider subordinating our mortgage lien if you have been approved by a lender/servicer for a new mortgage. The lender/servicer that is offering the new mortgage should contact HHA with their subordination request.


How is Hardest Hit fund assistance reported to the IRS?

You will receive a 1098-MA form for the current tax year to provide you and the IRS with the dollar amount of financial assistance your loan servicer received on your behalf from the Hardest Hit Alabama program in the current tax year. The amount of assistance you receive impacts the amount of mortgage interest you may deduct on your income taxes. HHA cannot offer tax advice, so please consult an attorney, tax preparer, or the IRS if you have any questions.