State and Federal Programs

Making Home Affordable Program

The Making Home Affordable Program was announced by President Obama in February 2009. It is designed to combat foreclosures by helping homeowners reduce mortgage payments to an affordable level.

If your mortgage loan is owned by Fannie Mae or Freddie Mac, your servicer must participate in the Making Home Affordable Program. If your mortgage loan is not  owned by Fannie Mae or Freddie Mac, your servicer’s participation is optional.

There are two main components of the Marking Home Affordable Program:

  1. Home Affordable Refinance (HARP)
  2. Home Affordable Modification (HAMP)

To determine your eligibility for the Making Home Affordable Program, you can contact:

  • A local HUD or MSHDA-certified prevention counselor in your area by clicking here.
  • The official Making Home Affordable website. Here you can:
    • access self-assessment and borrower tools
    • use the “checklists” to start gathering the information you need to speak to your mortgage servicer or housing counselor

Step Forward Michigan

In February 2010, President Obama announced $1.5 billion in funding to assist homeowners hit hardest by the aftermath of the housing crisis. Michigan received $498.6 million of this funding. The Michigan Housing Assistance Nonprofit Corporation (MHA), acting through the Michigan State Housing Development Authority (MSHDA), was charged with determining how to use these funds.

In July 2010, MSHDA rolled out several programs under the name of Step Forward Michigan.

These programs are designed for homeowners who:

  1. Receive current Michigan unemployment compensation;
  2. Have fallen behind in their mortgage payments or property taxes due to a one-time involuntary crisis such as temporary layoff, medical emergency, or divorce etc., and/or
  3. Can no longer afford their mortgage payments due to lower income.

To apply:

Unemployment Mortgage Subsidy Program

  • Eligible homeowners can receive monthly subsidies, paid directly to the lender/servicer, of up to $1,000 or 50% of the required monthly “Principal, Interest, Taxes and Insurance” (PITI) payment of a homeowners mortgage while they seek new employment
  • Maximum period of assistance is 12 months
  • Eligibility: Homeowners who have lost their job through no fault of their own and are receiving Michigan unemployment benefits.
  • How to apply:

Loan Rescue Program

  • Provides up to $30,000 in assistance to households who can now sustain homeownership, in order to catch up on delinquent mortgage payments or property tax and avoid mortgage/tax foreclosure
  • Can be coordinated with other mortgage modification programs to  help borrowers restructure their mortgage to sustain homeownership
  • How to apply:

Modification Plan

  • Provides up to $30,000 to pay delinquent amounts in order for the servicer to modify the homeowner’s mortgage with a more affordable payment.
  • How to apply:

Principal Curtailment Program

  • Provides one-time matching fund of up to $10,000 to homeowners seeking to modify their loans
  • How to apply:

Homeowners who apply through the online application system and are ineligible for the program will be automatically directed to a HUD or MSHDA –certified counselor in their area to explore other foreclosure prevention options.

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