As the COVID-19 pandemic continues to wreak havoc on the world, many homeowners are struggling to make their mortgage payments. Fortunately, Michigan is stepping up to help. The state has partnered with over 200 mortgage lenders to provide aid to homeowners impacted by the pandemic.
What Does the Aid Include?
The aid program includes a variety of options to help homeowners stay in their homes. These options include:
- Forbearance: Homeowners can request a forbearance, which allows them to temporarily pause or reduce their mortgage payments.
- Loan Modifications: Homeowners can work with their lender to modify their loan terms, such as extending the loan term or adjusting the interest rate.
- Repayment Plans: Homeowners can work with their lender to create a repayment plan that allows them to catch up on missed payments over time.
Who Is Eligible?
To be eligible for the aid program, homeowners must meet the following criteria:
- Their mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac, or be serviced by a participating lender.
- Their mortgage must have been current before the pandemic began.
- They must have experienced a financial hardship due to the pandemic, such as job loss or reduced income.
How to Apply
Homeowners can apply for the aid program by contacting their mortgage servicer. They will need to provide documentation of their financial hardship, such as a job loss or medical bills related to COVID-19.
It’s important for homeowners to apply for aid as soon as possible, as some programs may have a limited availability or expiration date.
Why Is This Aid Important?
The COVID-19 pandemic has caused unprecedented financial hardship for many homeowners. This aid program provides a much-needed lifeline to help them stay in their homes and avoid foreclosure.
Foreclosure not only impacts the homeowner, but also the local community and economy. When homes are foreclosed, property values can decrease, and the community can suffer from blight and crime.
By providing aid to homeowners, Michigan is helping to prevent these negative impacts and keep communities strong.
Conclusion
Michigan’s aid program for COVID-19 homeowners is a much-needed resource during these difficult times. Homeowners can take advantage of the program’s options to stay in their homes and avoid foreclosure. If you are a homeowner struggling to make your mortgage payments, reach out to your mortgage servicer to see if you are eligible for aid.