Avoiding Foreclosure

Are you anticipating a change to your mortgage that will be too expensive for you? Do not ignore the situation, act now. THDA has provided training to many organizations across Tennessee that will provide free and confidential counseling about your options. Please do not delay.

Start with the company that made the mortgage with you. Mortgage lenders can offer services to persons who are facing unaffordable payments. More options are available.

Identify your Contacts

  • Contact a certified counselor. These agencies are valuable resources. They have information on services and programs offered by government agencies and private/community organizations that might be able to help you. These counseling services are free of charge.
  • Your original lender may have sold your mortgage to a servicer. The servicer is the company that collects the monthly payment.
  • The federal government is offering information and options. For more information aimed at helping homeowners stay in their homes, see tips on how to avoid foreclosure.











Principle Reduction Logo

Principal Reduction Recast Program with Lien Extinguishment (PRRPLE)

The Tennessee Housing Development Agency’s (THDA) Principal Reduction Recast Program with Lien Extinguishment (PRRPLE) will lower monthly mortgage payments to affordable levels for eligible homeowners by providing (1) a reduction in the principal balance of their first mortgage loan, combined with a loan recast, modification, refinance or (2) principal reduction which results in a full lien extinguishment.

This program is available to qualifying homeowners who are facing a financial hardship, through no fault of their own, which resulted in a loss of income due to the death of a spouse, divorce, or underemployment.

PRRPLE eligibility requirements are:

  • Must be a resident of Tennessee and occupy the subject property.
  • Must have experienced at least a 30% reduction of income due to an eligible hardship (death of a spouse, divorce, or underemployment due to a previous job loss or permanent disability).
  • Must have current source of income.
  • Loan to value (the balance of the 1st mortgage in relation to the value of the home) after assistance can’t be below 78%.
  • Additional eligibility requirements and exclusions may apply.

The goal of the program is to reduce delinquencies and foreclosures by lowering mortgage payments to affordable levels for homeowners who have encountered a financial burden due to an eligible hardship, including but not limited to homeowners who are living on social security, long-term disability or other fixed income source.

If you have questions or need assistance with the PRRPLE application please call (855) 890-8073 or email PRRPLE@thda.org.



Form 4506 T – Request for Transcript of Tax Return
PRRPLE Credit Authorization
PRRPLE Third Party Authorizations Form
PRRPLE Owners Affidavit
PRRPLE Hardship Affidavit