Plan for Michigan Foreclosures First to be Carried Out

by Peter Vernon on States

The state plan of containing Michigan foreclosures will be the first to be carried out among the five state plans submitted to the Hardest Hit Fund of the U.S. Housing and Urban Development Department and the Treasury Department.

The plan of the administration of Michigan Governor Jennifer Granholm to use the $154.5 million received from the federal government in helping over 17,000 distressed homeowners with focus on the 11,000 currently unemployed has been approved by the HUD and the Treasury.

Based on statements from Governor Granholm, the money will be used to help Michigan residents who have lost their jobs and who are in dire situations such as medical emergencies. As just the risk of having one's home falling into bank owned property listing is devastating, the reality of being evicted from one's own house due to job loss is far more harrowing.

Officials of the Michigan Housing Development Authority said that people are being trained to run the program and that credit unions and banks will have a significant role in making the program successful.

Michigan foreclosures are still rising in number, as shown in foreclosure reports for the month of May. Over 20,300 homes were notified of default or foreclosure during the month, higher by six percent than the April total and higher by 46 percent than the May 2009 total. A big number of these are Citibank foreclosures, as Citibank unit CitiMortgage is one of the four largest residential mortgage lenders in Michigan and in other parts of the country.

Based on the most recent Home Affordable Modification Program report, there were 148,547 CitiMortgage delinquent borrowers who qualified for HAMP through May and there were over 154,000 offered trial modifications.

People planning to buy foreclosed homes can explore Michigan foreclosures, as the prices are still attractive. In the first three months this year, buyers bought distressed and foreclosed homes at an average discount of 31 percent.

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