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HHF Frequently Asked Questions

Watch our video, which explains the current status of Indiana’s Hardest Hit Fund.

What is going on with Indiana’s Hardest Hit Fund?

As of June 30, 2017, at 5:01 p.m. Eastern Time, Indiana’s Hardest Hit Fund ceased accepting new applications for mortgage payment assistance. This means that new and incomplete applications submitted will not be processed after the cutoff. Applications received before the cutoff are being processed as usual.

Why did the stop occur?

Our data analysis indicated that it was necessary to stop accepting applications as of June 30, 2017, at 5:01 p.m. Eastern Time to ensure that we have sufficient funds for homeowners enrolled in the program.

I’ve already been approved for assistance. Am I going to be affected by these changes to the program?

If you have already been accepted into the program, your funding will begin/continue as normal. You will not be affected by this change. This change only stops applications from being received starting June 30, 2017, at 5:01 p.m. Eastern Time.

I submitted my application before the cutoff. Am I going to receive assistance?

All homeowners who completed their application before the cutoff will have their applications processed as usual. Approvals are subject to all program guidelines for receiving assistance.

I am struggling with my mortgage and did not complete my application before the cutoff. What should I do?

Unfortunately, we cannot accept any more applications at this time. However, below are a few steps that homeowners can take:

First, we encourage homeowners to contact their nearest IFPN partner or authorized housing counseling agency, who can help explain options to avoid foreclosure.

Second, we ask that struggling homeowners sign up to be informed if surplus funds become available. If surplus funds become available, we will resume accepting applications for reinstatement-only assistance for approved reemployed homeowners. This brings delinquent loans current in one payment via the HHF.

Third, homeowners should contact their bank or lender directly to discuss options for a more affordable mortgage payment.

Will more money become available?

It is possible that surplus funds will become available in the future. If this occurs, we will resume accepting applications for reinstatement-only assistance for approved reemployed homeowners. This brings delinquent loans current in one payment via the HHF. Please sign up to receive information should surplus funds become available.

About the IFPN

What is the IFPN and can they help me?

The IFPN was developed by a coalition of community organizations, housing-related agencies, government agencies, lenders and banks, to assist Indiana homeowners who are struggling with—or who are at risk of—mortgage delinquency and foreclosure.

Even though our HHF mortgage payment assistance application deadline has passed, the IFPN still provides free foreclosure prevention counseling to any Indiana homeowner who needs it.

In Indiana, you have the right to meet face to face with your lender to try to resolve the mortgage dispute before the foreclosure may proceed, but homeowners must request this opportunity with the court. IFPN counselors can assist homeowners prepare and know what to expect during a settlement conference. For more information on settlement conferences, call 1-877-GET-HOPE (1-877-438-4673), or visit the Indiana Supreme Court’s website.

About the Hardest Hit Fund

NOTE: We are no longer accepting applications for Hardest Hit Fund assistance. The information below is ONLY for homeowners who have been accepted into the program. 

Now that I’m approved for HHF assistance, will I get a check?

No. HHF assistance is paid directly to your mortgage lender on your behalf.

Will I have to pay back the assistance I receive from Indiana’s HHF?

Although HHF is a loan, you do not have to make loan payments or pay interest. After 10 years, the loan is completely forgiven.  You only have to pay money back if you sell your home for a profit before the 10 years passes, and you only have to pay back as much as you can with the profit you make from the sale.  The rest is forgiven.  For example, if you received $10,000 in HHF assistance, and the next year you sell your house and make $10,000 in profit, you would have to pay back the entire $10,000 HHF loan.  But if you only made $2,000 in profit, you would pay back $2,000 and the other $8,000 would be forgiven.  If you broke even or lost money on the sale, all $10,000 would be forgiven.  Also, after 5 years 20% of the loan is automatically forgiven each year.  The longer you keep your home, the less you might have to pay back.

Term (in years from closing date) Amount Due Back to IHCDA
Years 1 through 5 100%
Year 6 80%
Year 7 60%
Year 8 40%
Year 9 20%
Year 10 0%

The HHF loan is not forgivable by reason of death of the borrower. However, because it is a non-recourse loan, the borrower’s estate has no personal liability for the debt, and IHCDA is limited to collecting from the available proceeds after sale of the property.

Can I refinance my home after receiving HHF assistance?

Yes. HHF does not prevent you from refinancing your home.  However, you should be aware of the following HHF policy:

  1. “NO CASH OUT” REFINANCE: If you refinance your home ONLY to get better loan terms than your current mortgage offers (such as a lower interest rate or payment), then IHCDA will sign an agreement with your lender to have the HHF loan put back into second place behind your refinanced loan (this is called a Subordination Agreement).
  2. “CASH OUT” or “LINE OF CREDIT” REFINANCE: If you refinance your home in order to receive money (“cash out” some or all of the value of your home), then you must pay back the the amount of HHF assistance that you received; OR, if you do not wish to pay back HHF, then IHCDA will not sign a Subordination Agreement and the HHF loan will be placed ahead of the refinanced loan (most lenders will not agree to refinance your loan without a Subordination Agreement). 

PLEASE PROVIDE THIS INFORMATION TO YOUR POTENTIAL REFINANCE LENDER BEFORE YOU SIGN ANY NEW LOAN DOCUMENTS.  The new lender should understand what this policy means and what effect it would have on their refinance loan. If you have additional questions, please contact the agency that assisted in getting you the HHF assistance.