Prevent foreclosure with home mortgage modification programs in Michigan.
If you are facing foreclosure or concerned that you will soon default on your mortgage, there is help. Thanks to a number of government-backed home mortgage modification programs, Michigan residents with high interest rates or reduced income can apply for modifications. There are also options if you've lost your job or cannot afford your home and want to opt out of your mortgage.
Michigan is one of 18 states that received federal money through the Hardest Hit Fund ( HHF ). The HHF provides payment assistance for homeowners who are underemployed, unemployed, or facing foreclosure due to other financial distress. Through this you may receive assistance on paying taxes, paying off second lien loans, or reducing an existing mortgage.
Additionally, you may qualify for one of the following Making Home Affordable ( MHA ) federal programs:
Home Affordable Refinance Program ( HARP )
If you are not behind on payments but cannot get traditional financing, HARP can help you refinance for a more affordable mortgage.
Home Affordable Modification Program ( HAMP )
This program makes it possible for homeowners to refinance their mortgages with monthly repayments at a level that's better-suited to their income. In order to qualify for HAMP, the homeowner must be able to demonstrate an ongoing level of financial hardship and the home must be the primary residence of the applicant. Recent changes in the legislation mean that if you've previously entered a HAMP trial period but defaulted on your payments, you'll remain eligible to enter the program.
Second Lien Modification Program ( 2MP )
Michigan homeowners who had their first loan modified under HAMP may be able to have a second loan modified as well. To qualify, you must not have missed three consecutive monthly payments on your modified mortgage or had felony convictions in the past 10 years.
Home Affordable Unemployment Program ( UP )
This reduces your payments to 31 percent of your available income. In some cases, payments can be suspended altogether for up to a year.
Home Affordable Foreclosure Alternatives ( HAFA )
If none of these options are suitablem to you, you can sell your home without having to pay the outstanding balance on your mortgage, or return the home to the lender via a Deed-in-Lieu of Foreclosure ( DIL ). You may also qualify for a relocation grant up to $10,000.
Michigan mortgage modification programs are also available through banks and mortgage lenders. To determine if you qualify for a Michigan home loan modification, talk to your lender as well as an authorized state or federal housing expert. For more information on refinancing and refinance rates, click here .