Michigan’s Hardest-Hit Fund Expected To Aid 17,000 Borrowers

Posted by Orb Staff on July 08, 2010 No Comments
Categories : Mortgage Servicing

chigan State Housing Development Authority's (MSHDA) HFA Hardest-Hit Fund foreclosure prevention program, which the U.S. Treasury Department formally [link=http://mortgageorb.com/e107_plugins/content/content.php?content.6141]approved last month[/link], is estimated to assist as many as 17,000 borrowers, according to an announcement made Wednesday by Michigan Gov. Jennifer M. Granholm. The MSHDA's proposal for use of the $154.5 million in federal funding includes mortgage payment subsidies for unemployed borrowers and principal reductions for borrowers with negative equity. Those who may be eligible include Michigan homeowners who are currently receiving unemployment compensation, homeowners who have fallen behind on 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. Of the 17,000 borrowers projected to receive aid under the program, the MSHDA estimates that 11,000 are currently unemployed. ‘This fund will allow families to stay in their homes and stabilize neighborhoods throughout the state,’ Granholm said Wednesday. ‘I want to thank the mortgage servicers who are teaming up with MSHDA to help us keep the dream of homeownership alive for thousands of Michigan families.’ The MSHDA is adding additional staff to review and process completed application packages after they are submitted by servicers, MSHDA Interim Executive Director Gary Heidel announced. ‘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 MSHDA 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 agency anticipates it could take 12 to 18 months before the state's Hardest-Hit Fund is entirely distributed. SOURCE: [link=http://www.michigan.gov/mshda/0,1607,7-141-7559_9637-240229–,00.html]Michigan State Housing Development Authority

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