Michigan is one of the states which has been granted assistance through the Hardest Hit Program to provide mortgage aid to homeowners who are struggling with various financial problems related to their home loan payment. Factors like unemployment, a reduction in a homeowner’s income, or underwater mortgages are common in almost every state, and for this reason, funding was granted to certain areas to provide mortgage relief to homeowners who may face foreclosure.
The Treasury Department granted this funding to states, like Michigan, in the hopes of providing further assistance plans, aside from federal modification programs, to alleviate the strain that homeowners are facing and causing foreclosures across the nation. Obviously, homeowners have had a variety of difficulties which have arisen over the past months, but these foreclosure prevention efforts through the Hardest Hit Fund are hoped to bring affordable solutions to homeowners in need.
The Michigan State Housing Development Authority is set to offer assistance to homeowners who are currently unemployed, funding to homeowners who are behind on their mortgage payment and can benefit from assistance to bring them current on their home loan, and paid to homeowners who may benefit from principal reductions on their underwater mortgage.
These programs are similar to other state assistance initiatives, but there are some who feel that they may be met with lackluster success as some of the nation’s top mortgage servicers must agree to participate in certain areas of these programs. As an example, principal reductions which are hoped to greatly benefit not only Michigan homeowners, but homeowners across the nation, may not be widely successful in various states if servicers are unwilling to participate in these plans to lower mortgage principal amounts.
While the availability of these programs may vary, homeowners in Michigan have been prompted to either consult their state housing authority or mortgage servicer about assistance options which may be available through these HHF programs. While only a limited number of homeowners may be assisted through these plans, it’s hoped that more foreclosures will be prevented since these options are yet another avenue homeowners may take to find an affordable mortgage payment solution.