Hardest Hit Homeowner Fund Gets Another $128M

DETROIT - More federal dollars are heading to Michigan. They are supposed to help people avoid foreclosure. However, some of the biggest banks in the nation are not yet participating in the state's

"Helping Hardest Hit Homeowners" fund.

Michigan with foreclosures ranked in the top ten states and unemployment topping 13-percent; the need for help is obvious. The state just got another $128-million dollars from the federal government for the Hardest Hit Homeowners fund aimed at helping people avoid foreclosure.

"That's on top of the $154-million that was awarded... about six weeks ago to Michigan, so when you combine it $280-million from the federal government to Michigan to keep people in their homes through this Hardest Hit fund," said Governor Jennifer Granholm.

The program has many facets, including one to help people unemployed for some time who get new jobs.

"Their current income is lower, so we're trying to create a sustainable monthly payment for that household. We will provide $10,000 of our Hardest Hit funds with a match from their lender, a one-to-one match," said Mary Townley with the Michigan Housing Development Authority.

The infusion of new, federal dollars should help as many as 30,000 Michigan homeowners now unable or struggling to make mortgage payments.

Some of the biggest banks in the nation, including Chase, Citigroup, Bank of America and Wells Fargo, got taxpayers' bail out money, but will not participate in the Hardest Hit program.

"I can't understand why they wouldn't participate unless they wanted to own all these homes that might end up going into foreclosure. It's absurd, and it's wrong. They were bailed out. This money goes for regular citizens. They need to participate, and they need to help our citizens," Granholm said.

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RELATED LINK:

Helping Hardest Hit Homeowners Fund
www.michigan.gov/mshda/0,1607,7-141--235359--,00.html