Governor Granholm, MSHDA Announce Helping Hardest-Hit Homeowners Fund to Combat Foreclosure
LANSING, MI – July 7, 2010 – (RealEstateRama) — Governor Jennifer M. Granholm today announced that the Michigan State Housing Development Authority (MSHDA), along with banks, credit unions and nonprofit counseling agencies, will launch a statewide program to help eligible Michigan homeowners avoid foreclosure by participating in the state’s new $154.5 million Helping Hardest-Hit Homeowners Fund.
Those who may be eligible include Michigan homeowners who are currently receiving unemployment compensation, homeowners who have fallen behind in their mortgage payments or taxes due to a temporary layoff or medical emergency, and homeowners who can no longer afford their mortgage payments due to lower household income.
“The Helping Hardest-Hit Homeowners Fund is a helping hand to our friends and neighbors,” Granholm said. “This fund will allow families to stay in their homes and stabilize neighborhoods throughout the state. I want to thank the mortgage servicers who are teaming up with MSHDA to help us keep the dream of home ownership alive for thousands of Michigan families.”
Lending institutions in support of the program include the Michigan Bankers Association, Michigan Credit Union League, and Michigan Association of Community Bankers. The Helping Hardest-Hit Homeowners Fund is designed to help as many as 17,000 Michigan homeowners avoid foreclosure, including 11,000 homeowners who are currently unemployed and struggling to pay their monthly mortgage.
The Michigan State Housing Development Authority is adding additional staff to review and process completed application packages after they are submitted by mortgage servicers, announced MSHDA Interim Executive Director Gary Heidel.
“We are going to distribute these funds as quickly and efficiently as possible, because we know the devastation that can come from a home foreclosure,” Heidel said. “The message we’re giving homeowners is to call their mortgage servicer immediately if they believe they are at risk of losing their home so that they can determine if they qualify for this program.”
The Michigan State Housing Development Authority will begin accepting applications from mortgage loan servicers beginning July 12. Final approval of an application is expected to occur within 48 hours of receipt of a complete application package. The Michigan State Housing Development Authority anticipates it could take 12 to18 months before the state’s hardest-hit fund is entirely distributed.
Eligible homeowners can obtain more information regarding the Helping Hardest-Hit Homeowners Fund by calling 866-946-7432 begin_of_the_skype_highlighting 866-946-7432 end_of_the_skype_highlighting or visiting www.michigan.gov/HardestHit
In February, President Obama announced $1.5 billion in funding for innovative measures to assist families in the states that have been hit hardest by the aftermath of the housing bubble. The Michigan State Housing Development Authority is one of five state housing finance agencies sharing the funding.
Contact:
Mary Lou Keenon
MSHDA Communications Office
Telephone: 517/373-0011
