Granholm plan to help homeowners approved by Obama administration

The U.S. Departments of Treasury and Housing and Urban Development (HUD) have approved the Granholm Administration's plan to distribute $154.5 million in federal funds beginning July 12 that could help more than 17,000 Michigan households avoid foreclosure, including 11,000 homeowners who are currently drawing unemployment benefits and are struggling to make monthly mortgage payments. "When homeowners can't make their mortgage payments it can be devastating," said Governor Jennifer M. Granholm. "These funds will help unemployed Michigan homeowners, and those who have fallen behind due to unforeseen circumstances such as a medical emergency, work out arrangements with their mortgage lenders so they can remain in their homes." In February President Obama announced $1.5 billion in funding for innovative measures to help families in the states that have been hit the hardest by the aftermath of the housing bubble. The Michigan State Housing Development Authority (MSHDA) was selected as one of the five state Housing Finance Agencies (HFAs) to share in the Hardest-Hit Fund investment with an award of $154.5 million. The amount was determined through a formula by HUD and the U.S. Dept. of Treasury that measured state unemployment and home value depreciation in 2009. The other four participating states are Arizona, California, Florida and Nevada. Michigan will be the first of the nation's five state HFAs to implement its plan. MSHDA will use the time between the approval and the launch of the program on July 12 to hire and train staff, provide information to potential applicants statewide about the program and educate participating banks and credit unions about the application process, said MSHDA Director of Homeownership Division Mary Townley. "We are eager to invest the resources provided by the Obama Administration to help Michigan homeowners prevent foreclosure as quickly and efficiently as possible," Townley said. "Banks and credit unions will play an integral role in the success of the new program because they will work with homeowners to determine eligibility criteria and best available options. The smartest advice we can give potential applicants is to contact their mortgage servicers to ensure they make an informed decision." Michigan's Hardest-Hit Fund plan is designed to help 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 those homeowners who can no longer afford their mortgage payments due to lower income. It was developed in partnership with representatives from the Michigan Bankers Association, the Michigan Credit Union League, the Michigan Association of Community Bankers, the Michigan Association of Realtors, the Michigan Foreclosure Task Force and MSHDA's statewide homeownership counseling network. Applications completed by homeowners and their loan service provider will be submitted for approval to MSHDA, with final approval of applications expected to occur within 48 hours of receipt of a complete application package. MSHDA is adding additional staff to review and process the applications, which will be processed on a first-come, first-served basis beginning July 12. MSHDA anticipates it could take 12-18 months before the state's Hardest-Hit Fund is entirely distributed. Published: Thu, Jun 24, 2010

––––––––––––––––––––
 Subscribe to the Legal News!
 https://test.legalnews.com/Home/Subscription
Full access to public notices, articles, columns, archives, statistics, calendar and more
Day Pass Only $4.95!
One-County $80/year
Three-County & Full Pass also available