Housing: MI announces plan for $154.5 million in federal housing aid…
The aimless squandering of money in the Obama Housing ‘Plan’ continues apace. 17,000 people will get help from $154.5 million in federal funds. There has to be a better way. This throwing money at the wall is bleeding us dry.
…More than 17,000 Michigan households will share in $154.5 million in federal funds targeted at keeping unemployed and underwater borrowers in their homes, according to a plan announced Wednesday.
Michigan housing officials filed their plan for the federal funds two days before the deadline set by the U.S. Department of Treasury. Once the Treasury Department approves the plan, funds would be available to struggling homeowners in the summer. Homeowners would have to go through their servicer to apply, officials said.
Michigan’s plan offers three options for homeowners:
• Mortgage payment assistance for homeowners now receiving unemployment compensation. The state would provide half of the monthly payment up to $750 a month for a maximum of 12 months.
• Rescue funds for homeowners who have fallen behind on their mortgage payments because of a temporary layoff or medical emergency and have overcome this obstacle. The state is to provide up to $5,000 to families in this situation.
• Federal matching funds for principal reductions for homeowners who can no longer afford their mortgage payments as a result of reduced income. This will allow up to a $10,000 principal reduction from the state and matched by the lender….