Michigan Mortgage Assistance Programs

For the third quarter in 2009, Michigan ranked 8th among all states in foreclosure rate, an increase of 9.5% from the second quarter, a rise of 22.31% from the same quarter last year. Nationally, it was the worse three month period in US history, with 937,840 homes receiving a foreclosure letter. Michigan’s 15.1% unemployment rate seems primarily to blame.

The Michigan Foreclosure Prevention Project is a project of the Michigan Poverty Law Program (MPLP), a cooperative effort of Legal Services of South Central Michigan (LSSCM) and the University of Michigan Law School. The program is a partnership with legal aid offices and housing counselors throughout Michigan, as well as the National Consumer Law Center (NCLC).

As of July 5, 2009, Michigan Law requires all lenders to work with distressed homeowners to avoid foreclosure. Remember these pointers:

  • Open all mail from your lender. You will receive a notice in the mail stating your right to work with your lender and a housing counselor.
  • Call an HUD certified non-profit housing  counselor or your local legal aid office as soon as you receive the notice.. You will have 14 days from the date the notice was mailed to contact a housing counselor or your local legal aid office and the lender

Here are some recommended counselors:

Once you’ve contacted a housing counselor, you will have 90 days to work with your lender to work out an agreement on your home loan.


  • Always  contact your local legal aid office for free legal aid.
  • Never  pay a fee in exchange for help working with your lender.
  • Always  contact a HUD or State of Michigan certified housing counselor for highly qualified, free  guidance on home buying, renting, reverse mortgages and default and foreclosure prevention.

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