Michigan Foreclosure Aid Program Overwhelmed by Calls
Last week, with the help of a special $1.5 billion Obama administration fund for the states most devastated by property price declines and foreclosures, the state of Michigan launched its own program for unemployed borrowers who are having trouble paying their mortgages.
Unlike the federal Home Affordable Mortgage Program, Michigan is hoping to offer the one thing proven to help borrowers avoid foreclosure: cash payments, combined with principal reductions. Unemployed borrowers can get up to $750 month cash to help make mortgage payments, and up to $15,000 in principal reductions on mortgage debt.
There's just one problem: According to the Detroit Free Press, the nation's biggest lenders are not yet on board.