Various metropolitan areas around the nation are seeing improvements in the number of permanent modifications and trials that are being offered, and in some states like Michigan where housing factors and unemployment have been a major hindrance in terms of the state’s recovery, there are still many individuals seeking out these forms of foreclosure prevention assistance as homeowners in not only Michigan but various states that are seeing trouble related to factors like joblessness and housing are looking for ways to stay afloat until they can find more stability in their financial life and employment situation.
While homeowners in these various states that are being affected by troubles like unemployment and housing will be dealing with different servicers, overall the Treasury Department has reported that some major areas in Michigan, specifically Detroit, Warren, Livonia, have seen increases in the number of permanent modifications that have been made. Information released here in September provided a wide range of data on modification efforts through the month of July and, from June to July of this year these areas in Michigan saw an increase in permanent modifications from 12,937 to 13,232.
Some homeowners in these states may also have specific Hardest Hit Fund programs available that can go beyond simple federal modification initiatives, as certain states have plans to set in place to address the specific needs of homeowners facing issues that may not be met through assistance plans like HAMP. While Michigan was one of the recipients of the Hardest Hit Fund aid given to states, homeowners should educate themselves on a variety of options that may be available from both federal and state initiatives, as it will depend on a homeowner’s situation as to whether they are going to benefit from certain types of assistance.
As an example, some servicers in Michigan may be able to help homeowners through these modification efforts, either from federal or private programs, but there are also extension programs from HAMP like the Home Affordable Unemployment Program that may give homeowners the opportunity to receive forbearance on their mortgage payments for at least a year. Yet, the Michigan State Housing Authority may also be able to offer aid to homeowners in specific situations where options like modification will simply not meet a homeowner’s particular needs at the present time.
Yet, there is some good news in the modification program in that services are continuing to see increases in these permanent home loan modifications and are being prompted to continue to change certain practices that will allow homeowners to see more success in the future. While there are no guarantees when it comes to any type of foreclosure prevention plan, homeowners in Michigan and across the nation have a variety of resources currently available through either representatives from the servicer or housing counseling assistance from either their state housing agency or the HOPE Hotline, and it’s hoped that with continued efforts in these various programs more homeowners in particularly troubled states like Michigan will find the foreclosure prevention they need until economic conditions improve.