Michigan has been one of the states that was particularly hard hit by the economic downturn and still suffers from trouble in the areas of housing, property values, and unemployment, which necessitated that options from the Hardest Hit Fund be made available to homeowners as a way to help avoid widespread foreclosures and further economic difficulties in major cities and counties. However, there are some reports that areas like Detroit are continuing to see problems when it comes to home sales and the average price of homes.
According to a report from Housingwire.com, there has been little signs of recovery in the Detroit area as, “home sales and the median home price declined once again in March.” Obviously, some homeowners may be avoiding buying a home simply because they are uncertain of the housing market and the future of economic conditions related to property values, despite the fact that there are some officials who feel that, in many areas of the nation, low home prices coupled with low mortgage rates that are still in place may create an optimal situation for potential homebuyers looking to find an affordable, low cost home.
Yet, for homeowners in Michigan who are still suffering from issues like negative equity, unemployment, or for those who simply may be behind on their mortgage, there are options that may be available from Michigan’s Housing Development Authority, as it’s stated that the funds from the Michigan Hardest Hit Program could potentially assist homeowners through a mortgage payment plan to aid homeowners currently receiving unemployment compensation, offer rescue funds for those who may be behind on their mortgage payments due to economic setbacks outside of their control, and there are also options that may be available that will bring about principal reduction opportunities for homeowners who can no longer afford their mortgage due to financial strains and the devaluation of their property.
Understandably, some homeowners in Michigan may also be able to use the federal Making Home Affordable Program to acquire a modification that will allow them to lower their monthly payment obligation in the hopes of finding foreclosure prevention stability in their mortgage payments, but alternative plans from these state-specific initiatives are hoped to bring about another resource for homeowners who may not qualify for a federal home loan assistance or an extension program from HAMP.
While, again, homeowners may talk with their mortgage servicer directly to inquire about underwater refinancing options from the Home Affordable Refinance Program or unemployment forbearance options through the Home Affordable Unemployment Program, there are also resources like housing counselors from HAMP and homeowners will be able to contact their state’s housing agency to ask about these HHF programs that could, again, offer mortgage assistance payments, principal reductions and aid for the unemployed. Homeowners do need to understand that these programs are no guarantee, but with a wide range of options that are potentially available for particular homeowners, it’s hoped that in states like Michigan where homeowners are still seeing hardships related to economic setbacks, more homes may be saved and homeowners can find stability in their monthly payments.