Hardest Hit: Handful of Lenders Sign On

MT. CLEMENS, Mich. - Smaller, community banks are taking the lead in helping Michigan homeowners avoid foreclosures. They've jumped in on the "Help the Hardest Hit" program. It's a federally funded program which will give money to struggling families to help them avoid foreclosure. However, it's the larger, national banks, which hold a big share of Michigan mortgages, that still have not signed on.

From Mt Clemens to Manistee, a growth area in our struggling economy is for companies maintaining and securing foreclosed properties.

"Business is picking up. It's busy," said Van Bevelle with Preferred REO. "It's not just in Detroit. It's all over."

The Community Central Bank and a handful of other Michigan lenders are participating in the Michigan Hardest Hit Fund, aimed at helping the unemployed and those who cannot afford their mortgage payments to keep their homes through direct assistance.

"I believe that there's some viewer frustration out there that says, 'I'm getting a busy signal. This program isn't for me.' My speech is be persistent and be patient. It will happen. We've got $154-million to share with everyone," said Rory Ballard, president of the Mortgage Division of Community Central Bank.

Monday, a huge flood of phone calls from people looking for help with their mortgages crashed the system at the Michigan State Housing Development Authority. The system is back up and wait times down. But people should first check with their lenders, and, so far, only a handful have signed up to participate.

"It's interesting that the only ones that have signed up for the program so far are community banks," Ballard said.

But what about the big banks that got billions of dollars in TARP money, a hand out from the American taxpayers to rescue their operations?

"As it stands right now, there are no 'big box' lenders on there," said Ballard. "The ones that are on there... are community banks, such as ourselves, Community Central Bank. There's a couple of local credit unions and that's it."

People whose banks or mortgage holders are not yet participating in the program can pressure them to change direction.

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RELATED LINKS:

Hardest Hit Fund: List of Servicers & Lenders

Hardest Hit Fund: Michigan State Housing Development Authority Website

Hardest Hit Fund: Frequently Asked Questions

Hardest Hit Fund: Letter to Banks