In recent years, many homeowners struggled with their mortgage payments and faced foreclosure. Both the federal and state governments have created assistance programs to help people keep their homes.
Step Forward Michigan offers homeowners four assistance programs:
- Unemployment Mortgage Subsidy Program. Unemployed homeowners receive monthly assistance with mortgage payments. The program pays lenders directly 50 percent, or up to $1,000, of the monthly mortgage payment for up to 12 months. Homeowners owe the lender the remainder of the payment. When applying for this assistance, you must already be receiving unemployment benefits.
- Loan Rescue Program. Money is available for homeowners who have overcome hardships. They must be able to now make their payments. The loans are intended to help pay past-due amounts.
- Modification Plan Program. This helps homeowners who have negative equity when the lender agrees to modify existing mortgage terms. Modified terms must result in a more affordable payment.
- Principal Curtailment Program. This also helps homeowners with negative equity. The program provides $10,000 if the lender agrees to match it with $20,000. Lenders must also agree to modify mortgage terms to make the payments more affordable.
If you need loan modification assistance, an experienced attorney can review your financial situation, evaluate your eligibility and help you decide the best way to proceed.