Michigan is one of many states who has been particularly troubled by the recession and other factors, like unemployment, which have been wreaking havoc on the housing market and causing trouble in the personal financial lives of many homeowners. However, the Michigan State Housing Development Authority has set in place an assistance plan to aid homeowners with various mortgage difficulties.
The Hardest Hit Fund is one of the newer programs being implemented to help homeowners who are facing the loss of their home through foreclosure. Numerous states in the nation have received assistance from this governmental program which has allowed them to set up their own mortgage assistance plans for homeowners who are struggling in their specific state.
The Michigan mortgage assistance program is hoped to offer financial assistance to homeowners who are unemployed, have fallen behind on their mortgage, or may have seen a reduction in their property’s value. Many homeowners across the nation in all states have had trouble with unemployment, which has caused missed payments on home loans, or may be suffering from an underwater mortgage.
There have been federal home loan assistance programs offered to homeowners, but it’s believed that when these types of mortgage plans, like federal modifications or underwater assistance programs fail, state-specific mortgage assistance plans may be able to allow homeowners the opportunity to find affordable solutions on their mortgage.
Obviously, foreclosure prevention programs have been heavily sought out over the past months as the job market and housing market are both slow to recover. However, Michigan, which was hard hit on many levels during the recession, may be able to offer additional aid to homeowners that are unable to take advantage of programs like the Making Home Affordable modification plan.
While these assistance options are not a guarantee to save a homeowner’s house, it’s believed that when state housing agencies are able to offer assistance directly to homeowners, there may be a higher likelihood that foreclosure can be prevented since a homeowner will not only deal with a national mortgage servicer, but can work with their state’s housing agency as well.