Senate committee reviews programs to help homeowners facing foreclosure
LANSING – The Senate Banking and Financial Institutions Committee today heard details on programs developed by the Michigan State Housing Development Authority to help Michigan homeowners who are facing foreclosure, said Sen. Randy Richardville, chair of the committee.
As one of the states hardest hit by the economic downtown, Michigan is among five states receiving funds from the federal government to help fight foreclosure. Michigan will receive $154.5 million out of the $1.5 billion to fund new foreclosure prevention programs.
“Michigan has one of the highest foreclosure rates in the nation as well as the highest unemployment rate,” said Richardville, R-Monroe. “As chair of the Senate Banking and Financial Institutions Committee, I have worked on several legislative packages to help keep homeowners and families in their homes. These new MSHDA programs will provide additional resources for homeowners who are still struggling.”
MSHDA worked with a statewide network of homeownership counseling agencies to develop three new programs to help homeowners.
The programs will specifically help those who:
• Receive unemployment benefits and struggle to make their mortgage payments;
• Face significant obstacles, such as previous job loss, family death or medical issue, that has resulted in overdue payments; and
• Have a different job that pays less than their employment when the home was first purchased.
“These programs will be another step in a series of options available to homeowners,” Richardville said. “Unemployment is a major cause for foreclosures in Michigan. One of the programs will offer temporary assistance to families who have faced a job loss and are struggling to make their mortgage payments.”
According to MSHDA, the programs will be available in July, pending final approval by the U.S. Department of Treasury. Homeowners are encouraged to contact their mortgage lenders and/or servicers for more information about how to qualify for assistance.
Posted: Wednesday, May 12, 2010
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