GreenPath Debt Solutions Hardest Hit Fund

(WASHINGTON – June 23, 2010) – State Housing Finance Agencies (HFAs) in Arizona, California, Florida, Michigan, and Nevada can begin to use $1.5 billion in "Hardest Hit Fund" foreclosure-prevention funding under plans approved today by the Obama Administration. This aid will support innovative local initiatives to assist struggling homeowners in those states, as part of the first round of funding available under this new program.

Michigan will distribute $154.5 million to homeowners in need under the following guidelines:

· Michigan will subsidize an unemployed borrower's mortgage payments while they search for employment.

· The state will assist with loan arrearages for those who can sustain home ownership and have undergone a financial hardship.

· The state will assist homeowners with negative equity through earned principal forgiveness.

As this program gets underway, GreenPath Debt Solutions reminds homeowners:

· Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.

· Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes. Recognize and avoid common scams.

· Assistance from a HUD-approved housing counselor is FREE.

· Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.

· Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

· Never make a mortgage payment to anyone other than your mortgage company without their approval.

GreenPath Debt Solutions

is a HUD-approved, nonprofit housing counseling agency. Free counseling on this new program is available by calling GreenPath Debt Solutions at (866) 648-8122.