Questions & Answers

A: The U.S. Treasury is providing financial assistance to Rhode Islanders who are at risk of losing their homes. U.S. Senators Jack Reed and Sheldon Whitehouse, and Congressmen Patrick Kennedy and Jim Langevin, played a strong advocacy role in convincing Treasury to provide assistance to homeowners in hard hit states like Rhode Island.

The goal of HHFRI is to prevent avoidable foreclosures by helping homeowners who are unable to make their mortgage payments due to a documented financial hardship such as job loss or underemployment. HHFRI payments are intended to complement existing federal and lender programs and will only be available to owner-occupied homeowners who have exhausted all other options.

A: Nearly one-quarter of all foreclosures and unemployment claims in Rhode Island last year were in Providence. The city is definitely considered the hardest hit in our state.

The next hardest hit communities are Warwick, Cranston, Pawtucket, Woonsocket, West Warwick, North Providence, Johnston, Coventry, East Providence, Cumberland, and Central Falls.

A: Assistance will address each homeowner's unique situation BUT generally breaks down into the following areas:

• Help to make mortgage payments while unemployed.
• Help to make an immediate payment to save your home such as unpaid property taxes.
• Help to obtain a loan modification from your lender.
• Help to assist homeowners who are in a severe financial crisis to relocate.

A: The amount of assistance will vary;depending on need and will generally range from $5,000 to $12,500 per family. However, the funds will be paid on behalf of the homeowner directly to lenders for mortgage payments or to third parties for obligations such as property taxes.

A: HHFRI will only be available to homeowners who have a documented financial hardship and have exhausted all options to maintain mortgage payments and avoid foreclosure. You may qualify if:  

• You own a 1- to 4-family home or a condominium, live in the building and do not own other real estate. 
• Your gross annual income is less than $87,800, if there are 1 or 2 people in your home; or less than $102,400 for a household of three or more. 
• Your monthly mortgage payments, including taxes and insurance, are greater than 31 percent of your gross monthly income (35% if your income is below $50,000).
• You have no financial resources of your own (except for $15,000 or less in savings). 
• You can have any amount in a retirement account such as a 401k or an IRA.
• You are a deployed member of the US Armed forces who have had a drop in income. (This applies to all enlisted personnel in regular and reserve units of the Army, Navy, Air Force, Marines and Coast Guard).
• You have a documented financial hardship that has affected your ability to make your mortgage payment, such as:
• Unemployment or underemployment;
• Death or disability of a key wage-earner;
• Unforeseen medical expenses;
• Costly home repairs due to the Spring 2010 flooding.
• Household income less than $50,000 per year.

Note: A loss of home value alone does not constitute a financial hardship.

A: Usually the funds will only have to be repaid if the home is sold within 5 years of the date of assistance, and then only if there is enough money available from the sale of the house. Otherwise the loan will be forgiven. 

A: There are only two ways to apply for HHFRI assistance:

• Through a HUD approved and HHFRI certified counselor including the Rhode Island Housing HelpCenter. Click here for a list of counseling agencies.
• Center for an appointment with a HUD approved and HHFRi certified counselor at 401-277-1500 or email: info@HHFRI.org.
• Through your local bank or credit union which services your mortgage in Rhode Island. If your lender is Rhode Island Housing, call 800 854-1180. 

A: No, there is no fee to apply for HHFRI assistance. It is free to obtain HHFRI assistance through your lender or a HUD approved and HHFRI certified counselor. So, you will not need to pay anyone to prepare a HHFRI application or for HHFRI-counseling assistance.

However, as part of the HHFRI agreement, you may be required to pay some portion of a mortgage delinquency or other mortgage-related obligations such as delinquent taxes or insurance.

You should be on the lookout for individuals and companies who offer assistance with HHFRI or other mortgage issues especially if they ask you for money. Always deal directly with your lender or a HUD approved counselor.

Stay involved! Fill out all the required paperwork and stay in contact with your lender or counselor throughout the process.

To learn more, call 401 277-1500 or e-mail info@hhfri.org. 

A: Click here to find a list of HUD approved and HHFRI certified counselors or you can call 401 277-1500 for a referral. You can also call the Rhode Island Housing HelpCenter at 401 457-1130, which is a HUD approved and HHFRI certified counseling agency.

A: To prepare for your meeting with your lender or counselor we suggest you utilize the checklist, click here for a copy, and bring all required documents with you.

A: Your lender/servicer or counselor will review your financial situation and help you consider all of your options. If it is determined that you may be eligible for HHFRI assistance, they will complete the HHFRI application with the necessary disclosures and collect all supporting documents. You will be required to sign an IRS form 4506T which may be used to re-verify your tax filing. Once the application is complete, the lender/servicer or counselor will submit the package to the HHFRI Center for processing. The HHFRI Center will determine if you qualify for assistance. If approved, they will work directly with you and your lender/servicer or counselor from receipt of the application to closing.