Michigan has remained one area of trouble for homeowners as we have not only seen housing issues arise in this particular state but recent reports that were released indicated that the unemployment rate in Michigan is currently at 11.1%, which is for the month September, and remains one of the higher unemployment rates for a state in the nation. While there are a great number of homeowners across our country who are facing trouble, Michigan homeowners who are turning to popular programs like the federal Making Home Affordable initiative have seen is some mixed results in the total number of modifications that are being seen, according to the most recent reports.
Homeowners with a variety of mortgage servicers will obviously see different results as some banks are implementing this federal program have seen more success than others, but homeowners often vary in terms of the severity of their situation and need, so this will impact the successfulness of some when it comes to getting a trial or permanent modification as well. Yet, the mixed results that the Treasury Department released here in October showed that the number of active trial modifications decreased between July and August in Michigan as this number dipped from 3,330 to 3,279. Yet, the number of permanent modifications reported increased from 21,853 to 22,246, which is deemed be a positive when we see movements in the direction of more homeowners being offered these permanent assistance plans as it can indicate that homeowners may be in a position where the chances of the loss of their homes through foreclosure has been greatly reduced.
Understandably though, Michigan homeowners, like many others across the nation, are reminded that these modification programs are not guaranteed as some homeowners who are either in a trial or a permanent home loan modification have sometimes fallen back into an area where they are delinquent or default on their mortgage payment once again, yet we have seen some improvements when it comes to homeowners who are offered a permanent modification being able to sustain this payment due to the fact that homeowners must at least make three consecutive payments during a trial modification period where delinquency and the possibility of foreclosure may have previously been in place.
Homeowners with Michigan may also be aware of certain state-specific programs that have been put in place as a result of the Hardest Hit Fund, and these options may go beyond simple payment modifications as a way to help homeowners avoid the loss of their home when problems like unemployment, negative equity, or other issues have arisen and are causing homeowners financial distress. While these state plans are not offered to everyone who is struggling with their mortgage, it’s hoped that as homeowners in states like Michigan who have a variety of options when it comes to avoiding the loss of their home will, hopefully, begin to see more improvements in the economy and job market over the coming months but until such a time where economic strength and the personal financial lives of homeowners are on a more stable ground, these programs can be helpful when it comes to keeping homeowners in their home.