Extra Federal Support to Help Beat Foreclosure
Michigan Governor, Jennifer M. Granholm has recently declared the Michigan State Housing Development Authority (MSHDA) will get more support from the Obama administration’s HFA (Housing Finance Agency) in the form of $128.4 million. The assistance goes to unemployed homeowners fighting to make their mortgage payments—in effort to avoid foreclosure.
Michigan is but one of 17 states, as well as the District of Columbia, throughout the country to receive nearly $2 billion in additional funding from the Department of Treasury’s Hardest Hit Fund. Just two months ago, the Department of Treasury and HUD approved the MSHDA’s wish to spread $154.5 million worth of federal funds, to assist homeowners at risk of certain foreclosure while also dealing with a shrinking income due to loss of work and/or medical condition(s).
Michigan’s Hardest Hit Fund provides support to homeowners receiving unemployment benefits, those who have fallen behind on payments due to foreseen financial or medical issues, and people who are simply incapable of paying their mortgage.
Approximately 70 requests have been approved by the MSHDA since the Hardest Hit Fund was established July 12th. The fund was produced by reps from the Michigan Bankers Association, the Michigan Foreclosure Task Force, the Michigan Association of Community Bankers and MSHDA’s own statewide homeownership counseling network.
The Hardest Hit Fund was first introduced by President Obama back in February. Governor Granholm said, “We’re eager to use these federal funds to help at-risk families in Michigan avoid foreclosure…Helping families stay in their homes benefits all Michigan homeowners by stabilizing neighborhoods and property values.”
It’s been estimated the Hardest Hit Fund may take between 12 to 18 months for it to be distributed. States meeting the criteria to receive extra support, have all had unemployment rates at, or greater than, the national average within the past year. States utilize additional resources to support various unemployment programs.
The following is a list of all of the states eligible for additional funds/assistance as well as the amount they stand to receive: