Mid Michigan families struggling to make their monthly mortgage payments soon will have help from a program aimed at some of the hardest-hit communities throughout the state.
The program will begin distributing a total of $154.5 million in federal funds to Michigan residents who are in danger of losing their homes to foreclosure.
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Michigan State Housing Development Authority (MSHDA) was one of five state housing agencies selected nationwide to receive federal funding from the U.S. Department of Treasury and Housing and Urban Development (HUD). Arizona, California, Florida, and Nevada also received funds. In Michigan, it is estimated that the Hardest Hit Fund program will help more than 17,000 families.
"The focus is to keep families in their homes," says Mary Townley, director of homeownership for MSHDA. "I know the struggles they've gone through in Saginaw, Bay City, Midland, and Mount Pleasant. So if lenders take advantage of this program, it could could have a significant impact."
The program, scheduled to begin July 12, will help those who have fallen behind in their mortgage payments due to unemployment, medical emergencies, and other circumstances, Townley says. People should contact their mortgage lenders if they are interested in participating in the program.
The program can help people in three ways. If people are facing:
- Unemployment or reduced incomes, they can qualify to receive mortgage assistance for up to a year for half the cost of the mortgage, up to $750.
- Arrearage due to a death in the family or medical emergency, they can qualify for up to $5,000 in mortgage assistance.
- Lower incomes after a period of unemployment, they can qualify for a loan principal reduction through a 50-50 match between the lender and MSHDA. For example, a homeowner needing $10,000 would receive $5,000 from the lender, and $5,000 from MSHDA.
"It's a win-win for all areas to take advantage of this," Townley says. "If we can get families back on track, it will help eliminate blight problems in our communities."
Writer: Jenny Cromie
Source: MSHDA, Mary Townley (state director of homeownership)
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