Frequently asked questions (FAQ) for the Michigan Hardest Hit Fund

What types of options are available to Michigan homeowners under this proposal?

The Hardest Hit Fund plan put together by the state of Michigan includes three different options for homeowners:

1) It will provide direct mortgage payment assistance and cash grants for those homeowners who are currently receiving unemployment compensation.

2) The program will provide rescue funds for any Michigan homeowners who have fallen behind in their mortgage payments due to an involuntary inability to pay experienced by the borrower, such as a reduction in income, a temporary job layoff or medical emergency and if they have overcome this obstacle.

3) Federal government matching funds will be provided for principal reductions on the loan for homeowners who can no longer afford to pay for their monthly mortgage payments as a result of reduced income.

Who will the hardest hit fund plan help?

Many people. It will aid Michigan homeowners who are currently receiving unemployment compensation, homeowners who have fallen behind in their mortgage payments or property taxes due to a temporary layoff or medical emergency, and it can also assist those homeowners who can no longer afford their mortgage payments due to lower income from maybe a job loss or reduction in working hours.

If I apply, is there a household income limit?

Not at this time. There are no specific household income limits set in place by the program, however the amount and type of assistance that will be provided is limited to hardest-hit individuals meeting the program eligibility requirements.





Am I eligible for assistance if I am unemployed and my spouse is working?

Eligibility to the program will be determined by an applicants total household income and the affordability of their currently mortgage payments. So yes, you may still be eligible for assistance even with your spouse still working.

How many Michigan homeowners could be helped under the Hardest Hit Fund?

Thousands of homeowners will receive help. While the exact number is to be determined, the total number of households in Michigan who could receive benefits from the Hardest Hit Fund by participating in one of the three components should approach 20,000.

What is the role of the various Michigan credit unions and banks in this program?

They have a critical role to play in the Michigan Hardest Hit Fund program. Michigan banks and credit unions are working to help homeowners deal with foreclosures and mortgage issues, and therefore have an integral part in the success of these new programs. Their loss mitigation staffs of these organizations are familiar with the various programs and options people have, as well as the eligibility criteria. They will work with homeowners to find the best option available to their mortgage problems.




I’m interested in applying.

You need to contact your mortgage loan servicer to see if you are eligible. The number should be on your monthly mortgage statement or bill.

Can homeowners qualify for more than one mortgage or foreclosure program?

Unfortunately not. Homeowners will only be eligible for assistance through one component of the program. Homeowners will need to work directly with their loan service provider or lender to determine which type of mortgage assistance program best suits their needs based on a review of the customers’ financial situation and their ability to make payments.

How are applications be processed?

The applications which will need to be completed by homeowners and their loan service provider will be submitted for approval to MSHDA. MSHDA is adding additional staff to review and process the applications on a first-come, first-served basis. So apply early. Once they are fully staffed, MSHDA does plan on getting final approval of applications will occur within 48 hours of receipt of a complete application package.





By Jon McNamara

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