More help for struggling Michigan homeowners, up to $30,000
Step Forward Michigan increases assistance through Help for the Hardest Hit funds.
Step Forward Michigan recently increased assistance amounts to eligible struggling homeowners with their mortgage payments to $30,000. This program has already helped thousands of homeowners with qualifying involuntary hardships to afford to keep their homes. Michigan State University Extension educators explain that more may now qualify for increased subsidies.
“This is a wonderful program. Most of our housing clients are receiving Step Forward funds in recent months”, said Jim Buxton, Housing Counselor with Ionia MSU Extension. “It enables them to keep their homes instead of going through foreclosure. We help them fill out the application, submit all the required documents, and follow-up until a decision is made. Once they get their payments caught up, they can also apply for a loan modification with their lender.”
A summary of the revisions are highlighted below:
- Eligible property type now includes one- to four-unit (verses a single-family unit) owner occupied residences for all programs
- Unemployment Mortgage Subsidy program
- Mortgage payment subsidy for a full 12 months (verses two months after the homeowner returns to work)
- Equal to 50 percent of the validated mortgage payment up to $1,000 per month (verses $750 per month)
- Maximum assistance of $30,000 which can include monthly subsidy and funds toward delinquencies (verses $20,000)
- Must be receiving Michigan Unemployment Benefits to qualify
- Loan Rescue assistance up to $30,000(verses $20,000)
- Now help catching up on delinquent property taxes as well as mortgage payments
- Modification Plan – a new program
- Targeting under-employed homeowners
- Mortgage must be at least two months delinquent
- Mortgage payment must exceed 45 percent of gross household income
- Homeowner has a qualifying involuntary hardship
- Assistance up to $30,000 to cure delinquency and other associated costs
- Servicer must modify the loan terms
- Available on second mortgages if first mortgage is current
Homeowners who already received Hardest-Hit assistance cannot re-apply, however clients who previously applied and were ineligible because they were outside of program parameters may reopen their application under the updated guidelines.