Michigan Gets Money to Stem Foreclosures

By: Associated Press
By: Associated Press

DETROIT (AP) -- A fund aimed at helping Michigan homeowners avoid foreclosures will get a $215.6 million boost to help unemployed and underwater homeowners.
Andrea Risotto, a U.S. Treasury Department spokeswoman, says the funding infusion is in addition to more than $282 million the state has received since February, bringing the total to nearly $500 million.
Michigan is considered one of the five states hardest hit by the housing crisis.
President Barack Obama announced the national $1.5 billion investment earlier this year for state's hit hardest by the mortgage crisis. Arizona, California, Florida and Nevada also have received money.
The Detroit Free Press reports 230 homeowners have received help so far, but more than 30,000 were expected to qualify.

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  • by Anonymous on Oct 1, 2010 at 01:58 PM
    After reading the comments, I'm still not sure if we are helping the banks or the homeowners? Why doesn't the banks reduce thier own loans? Seem to me if someone has been paying on thier house for 10-20 years has a lot of money they paid in, I bet if you have a 30 mortgage at the end of 30 years you paid 3 times as much. That's why I said are we helping the banks or the homeowners.
  • by Kelly Location: Lansing on Oct 1, 2010 at 12:22 PM
    The money for these bailouts does not grow on trees. It comes out of the pockets of hard working taxpayers who live within their means. Please be reminded that Congressional liberals like Barney Franks and Chris Dodd forced lending institutions to provide mortgages to people they knew could not afford them. So why does everyone act so surprised that those same people are now unable to pay the mortgages they shouldn't have received in the first place? At some point, the people who work hard and live within their means are going to get tired of picking up the tab for other people's poor decisions. For the person who asked, an underwater mortgage means they owe more than their house is now worth. In other words, they were allowed to purchase a house without an approriate downpayment (another forced program courtesy of Franks and Dodd), so there was not sufficient equity in the house to withstand the current downturn in the housing market.
  • by chris kime Location: jackson on Oct 1, 2010 at 08:11 AM
    The money dose me no good because only small lending organizations are using this money, the big name banks are still not on board with the program. I am a custumer of citi lending company and they tell me they have no such program to help me out. i have been struggling to pay my morgage for 2 years after loosing my factory job and have done aloan modification to keep my home but my payments went up so now three months later we are back in the same boat still can't afford my home . I just wish the help that is out there is available to all so me and my family can stay in our home. thank u
  • by Dave Location: Eaton Rapids on Oct 1, 2010 at 07:23 AM
    So the Helping Hardest Hit Homeowners fund gets more money. BIG DEAL! The reason only a handful of those that qualify have received assistance is because it's optional for mortgage companies to participate in the program. A vast majority of homeowners that need assistance have mortgages thru large companies that refuse to participate, i.e. Citi, Bank of America, Wells Fargo. Great idea Mr. Obama! Horrible execution! Let's give the banks tons of money then give them the option to pay it forward. I guess when things roll downhill, help isn't one of them.
  • by Anonymous on Oct 1, 2010 at 06:07 AM
    What is a house underwater? 1) Does that mean a homeowner owns more than the house is worth? And he or she can't sell it. 2) Or does that mean the owner is about to lose the house?
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