The Hardest Hit Fund has contributed approximately 700 million dollars to aid California's fight to stop foreclosure.

California homeowners have endured comparatively high levels of financial hardship. Many borrowers in California have lost the ability to make mortgage payments due to a loss of income, divorce, medical issues and other typical causes of unpreventable hardship. The difference in California is that a large population of homeowners have been adversely affected by the unwinding housing, mortgage, and foreclosure crisis. Factors such as rising monthly mortgage payments and unprecedented statewide declining home values have created a compounding effect compared to other states.  These horrific economic conditions have triggered an even worst and unforeseen trend in which homeowners are now strategically defaulting on their mortgage because of the overwhelming drop in home values and thus home equity.

The housing slump and economic hardships experienced in California are dramatically worst in comparison to other states. This difference appears both in the size and severity of the declining trends of the housing and mortgage slump as well as the rising rates of foreclosures. The typical mortgage solutions and foreclosure alternatives that work in other states do not prove as effective in California because of the limited dollars available to help this large segment of California homeowners suffering through financial hardship and mortgage default.

These circumstances have led to the decision to financially assist the state of California in it's fight to stop foreclosure and provide homeowners assistance through available resources of the Hardest Hit Fund which was created trough the Making Home Affordable Plan.