Michigan Provides Foreclosure Assistance for Homeowners
Michigan legislative leaders recently passed legislation to strengthen Michigan’s economy and bring relief to countless Michigan residents struggling with foreclosure.
The Michigan Legislature passed HB 5015 which will use $97.2 million to create a Homeowner Protection Fund to assist those affected by the national foreclosure crisis. The funds are coming from the state’s share of a national settlement with five leading mortgage servicers that were accused of shady foreclosure processes and services.
According to the Attorney General’s office, the money is being used to advance the following eight initiatives:
- Assistance for Veterans – $5 million. The men and women who served our country also have been affected by poor mortgage servicing and foreclosure practices. These funds will provide targeted relief for military service members unable to qualify for existing programs.
- Grants to Help Homeowners Refinance – $5 million. These funds will allow The Michigan State Housing Development Authority (MSHDA) to provide grants to help pay the closing costs of citizens who utilize the Homeless Assistance Recovery Program (HARP). Eligible citizens will receive assistance paying closing costs associated with refinancing their homes.
- Assistance to Homebuyers – $15 million. These funds will assist both service members and non-service members by providing grants to offset the purchase price of a home. Service members may be eligible for grants up to $5,000 and non-service members up to $3,000.
- Foreclosure Rescue Scam Victim Restitution – $7.5 million. These funds will help Michigan residents who have been targeted by foreclosure rescue scam artists with restitution payments of up to $3,000 per victim of a restitution scam.
- Blight Elimination – $25 million. These funds will be dedicated to blight elimination efforts throughout Michigan. Given that blighted property contributes to an environment conducive to crime, targeting blight elimination in these areas will further efforts to reduce crime.
- Foreclosure Counseling for Homeowners – $20 million. The Michigan State Housing and Development Authority (MSHDA) and Michigan State University Extension Offices will use these funds to expand their much-needed, free homeowner counseling services for citizens seeking to avoid foreclosure.
- Housing and Community Development Programs – $3.7 million. These funds will be allocated to the Michigan Housing and Community Development Fund which develops and coordinates public and private resources to meet the affordable housing needs of low-income households and revitalizing downtown areas and neighborhoods in Michigan.
- Education Achievement Authority – $10 million. These funds will be used by the Education Achievement Authority (EAA) to help improve the performance of Michigan’s lowest-performing schools.
If you have any questions relating to foreclosure or are in need of assistance, contact Tariq Hafeez at (248) 380-0000. To learn more about the Homeowner Protection Fund, please visit the MI Department of Attorney General website.