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Michigan will be one of the first States to benefit from President Obama’s Hardest Hit Fund. The $1.5 billion federal fund, targeting innovative solutions to the housing crisis, will set-aside $155 million for Michigan’s unemployed homeowners.
Governor Jennifer Granholm, flanked by housing assistance agencies and mortgage lenders announced Michigan’s program to help 17,000 Michigan households that are struggling to make their mortgage payment.
MSHDA Proposal Approved
The Michigan State Housing Development Authority (MSHDA) was one of five state Housing Finance Agencies (HFAs) to be approved funds from the Hardest Hit Fund (others include: Arizona, California, Florida, Nevada).
Each of these states were selected based on dramatic declines in housing values, each having lost 20% or more and skyrocketing unemployment, like Michigan’s unemployment rate of 13.7%.
Michigan’s Helping Hardest Hit Homeowners Plan
How do you qualify for this government mortgage assistance?
Michigan’s Helping Hardest Hit Homeowners plan is designed to assist:
- Homeowners in making mortgage payments that are currently receiving unemployment compensation,
- Homeowners with funds to catch up on past due payments caused by unemployment or medical crisis, and
- Homeowners with matching funds for principal reductions needed to afford homes they can no longer afford due to reduced income.
The only catch is that your mortgage loan servicer does not need to participate in the program. Starting on July 12, 2010 mortgage servicer are expected to begin signing participation agreements. Participating lenders will be posted on the MSHDA website.
Additional Resources on the Program
- US Treasury’s announcement of Obama administration’s “Hardest Hit Fund”
- Governor Granholm’s announcement of Helping Hardest Hit mortgage program
- MSHDA’s explanation of the MI Helping Hardest Hit Homeowners Program
- Michigan State Housing Development Authority (MSHDA) website
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