Hundreds of Michigan homeowners are having a tough time keeping up with their mortgage payments. Fortunately, in these difficult economic times, there are various mortgage relief options available that can provide counseling and assistance.
This post will provide you with all the information you need about these programs. The most important thing to remember is that It’s not too late, and there is hope! Read on to learn more.
Getting Started
If you want to obtain mortgage relief, you should start by speaking to your lender about your financial situation. It is common for lenders to work with homeowners who are unable to make their monthly payments. A HUD-approved housing counselor is an excellent resource if you have questions about what you should tell your lender.
Mortgage Relief Solutions
There are many mortgage relief options available in Michigan. You can modify the term of your mortgage loan, lower your interest rate, and make your mortgage payments with a variety of programs.
Mortgage Modification
If you have difficulties making your payments on time, you may qualify for a loan modification. A mortgage modification involves negotiating a new payment plan with your lender that matches your current financial situation. Some cases may even allow for a lower interest rate to be negotiated.
Forbearance
You may be able to apply for a forbearance program if you are experiencing temporary financial difficulties. In this arrangement, you can gain financial stability while making reduced or no payments for a period of time.
Principal Reduction
Depending on how much you owe on your home, you may be eligible for a principal reduction. This would result in a reduction in your loan balance to reflect the current market value of the property.
Loan Refinancing
The possibility of refinancing at a lower interest rate may be available to you if you are having trouble making your mortgage payments. If you qualify, your monthly payments may be lowered.
Short Sale
A short sale is the sale of a home for less than what the loan balance is owed. In the aftermath of the sale, the proceeds from the sale are used to pay off the debt.
Deed in Lieu of Foreclosure
Deeding your home back to the lender in lieu of foreclosure might be a final option if you cannot sell your home or negotiate a loan modification.
Mortgage Relief Programs in Michigan
Homeowner Assistance Fund (HAF)
The Michigan Homeowner Assistance Fund Program helps income-eligible homeowners facing pandemic-related hardships avoid foreclosure, defaults, and displacement from their homes.
How it Works
Michigan homeowners affected by the COVID-19 pandemic may qualify for up to $25,000 in housing assistance.
Eligibility Requirements
Only those who suffered financial hardship due to the Coronavirus pandemic after January 21, 2020, are eligible for this program.
In addition, the following qualifications must be met:
- The homeowner has a household income under 150% of the Area Median Income (AMI).
- The homeowner owns and occupies the Michigan property as their primary residence.
How to Apply
Register and apply here. Proof of financial hardship, a mortgage statement, and housing-related documents may also be required.
Foreclosure and Its Impact
Michigan homeowners facing foreclosure should understand how the process works and what its consequences are. If you default on your mortgage payments, you may lose your home. Moreover, Michigan laws allow for both judicial and nonjudicial foreclosure processes, so a Landlord is not obligated to take the issue to court.
You should also avoid foreclosures at all costs if you want to maintain a good credit score. Finally, foreclosures are destructive to communities. A decline in property values may lead to an increase in crime as criminals target vacant homes.
Avoid Foreclosure in Michigan with Favor Home Solutions’ Save My Credit Program
At Favor Home Solutions, we’re dedicated to restoring your peace of mind and protecting your credit. Our ‘Save My Credit’ Program takes over your mortgage payments, so you don’t have to list your home for sale or worry about foreclosure hitting your credit report.
You might even be able to pocket some money at the end: no fees, no gimmicks, and no obligations. Contact us today to get started!
