If you are a homeowner in Michigan and have encountered unforeseeable hardships such as a job loss, a divorce, or an unexpected illness, you may have fallen behind on your mortgage payments. This is a scary and difficult situation to face, and it may feel like you’re all alone. However, so many Michigan residents have encountered this situation, that resources have been developed to support you. Keep reading for an explanation of three unique resources available right here in the Great Lakes State.
One of the best resources available to Michiganders facing foreclosure is the Step Forward Michigan Program. This program was created by the Michigan Housing Authority and put funds from the federal Hardest Hit Fund to work at keeping homeowners in their homes. To be eligible, you must meet a variety of conditions:
- Your lender must be on the list of participating institutions.
- You have less than $10,000 in the bank (note that this does not include retirement savings.
- The property facing foreclosure is:
- Your primary residence
- No more than four units
- Located in Michigan
- You have a recorded deed showing that you own the property.
If you meet the eligibility requirements, you should complete an application as soon as possible. The application includes verification of your current income and assets (so have paystubs and bank statements handy when you apply.) You’ll also be asked to explain the reason for your hardship in an affidavit. Should you have any questions during the application process, Step Forward Michigan is reachable at 866‐946‐7432. They provide financial assistance to approved applicants. Financial aid can include grants or loans and may cover the cost of mortgage payments, property taxes, or housing association fees. The loans are forgivable — each year you remain in your home as your primary dwelling and stay current on your payments, 20% of the loan will be forgiven.
Center for Non-Profit Housing.
This HUD-approved agency provides counseling and support to any Michigan homeowner in Newaygo, Oceana, or Muskegon counties, who are currently facing financial distress. Cash grants and financial assistance may be available to specific borrowers living in Newaygo county, so if that’s where your home is located, make this your first call. The program can provide a loan of up to $30,000, interest-free. Some loans may even be forgivable.
Michigan Foreclosure Prevention Project.
MFPP brings together lawyers from seven major Michigan law firms. They are funded by the Ford Foundation, the Michigan State Bar Association, and the National Mortgage Settlement fund. This organized group of disparate individuals acts as a team to assist struggling homeowners in Michigan. They provide:
- Direct assistance and representation in court for affected homeowners.
- Legal support, clarifications, and interpretation for housing and financial counseling agencies.
- Policy advice to lawmakers.
- Training and technical support.
The Michigan Library System.
That’s right! This helpful list of resources and assisting agencies were compiled by researchers. It includes information about your rights in Michigan, what you can expect from each stage of the process, and even tips on how to avoid common scams.