Foreclosure 101 and Step Forward Update
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Full training available on CEDAM’s YouTube!

Last month Tracie Coffman, Coordinator of the Michigan Foreclosure Task Force, gave an in-depth introduction to tax and mortgage foreclosure for new MFPC AmeriCorps members. This is an excellent primer for anyone new to the foreclosure process in Michigan.

1 Introduction:
2 Foreclosure Terminology:
3 Foreclosure Timeline:
4 Loss Mitigation:
5 Step Forward Update:

On a related note, the Step Forward Michigan program expanded. The following is the text from the official announcement:

In order to increase activity and more funding in our Step Forward Michigan’s Unemployment Mortgage Subsidy (UMS) and Modification Plan (MP) programs, the U.S. Department of the Treasury has approved our request for expanded guidelines. Please share this information with other staff members in your office as you continue to help applicants apply for Step Forward assistance.

Below are some highlights of the expanded eligibility requirements:

Unemployment Mortgage Subsidy Program (UMS)

The UMS program is now open to homeowners facing either of the following situations;

  • A 20% or greater reduction in gross income; includes self-employed applicants.
  • Received Michigan unemployment income within the last twelve months.

This program continues to subsidize the monthly mortgage payment, reinstate the delinquency and can now pay outstanding property taxes or condominium association fees directly to a participating county treasurer or condominium association when;

  • There is no mortgage lien.
  • The mortgage lien is current and held by a non-participating mortgage lender.
  • The participating mortgage lender is unable to establish an escrow account.

Modification Plan Program (MP)

The MP program is now open to homeowners facing either of the following situations;

  • Loan to Value above 115%.
  • Mortgage Payment to Gross Household Income ratio above 45%.

Up to $30,000 is available to pay toward negative equity, reinstate the delinquency and re-amortize the existing balance to reach a more affordable payment. The mortgage lender/servicer determines whether to do a modification or only a recast.

Loan Rescue Program (LR)

No changes

Principal Curtailment Program (PC)

No changes Program Funds may be exhausted by 11/01/2014.