Hardest Hit Program Off to Rocky Start

HOLLY, Mich. - There's anger and frustration among homeowners who want to apply for the state's new "Hardest Hit" fund. It's supposed to help people avoid foreclosure, and it's first come, first served. But, the program is off to a rocky start.

Hal Summers of Holly is definitely a hardest hit homeowner. He's a former steel worker whose factory shut down a year and a half ago. He's five months behind on his mortgage payments and is in real danger of losing his home.

"So, I started calling the number that they put on the screen to call," said Summers.

The number is for Michigan's new Hardest Hit Fund. We tried it, too, and with the clock ticking and ticking, we just kept hearing, "Thank you for holding. For more information, you may visit our website 24 hours a day."

Summers showed us his phone on hold for 112 minutes and counting.

"The phone number tells you to go to the website if you have any other questions, and when you go to the website, it says to call the phone number. But nobody answers either one of them. There's no answers to be had for what's going on," Summers said.

It's a frustrating situation for people in dire need and it gets worse. As the state's website explains, to apply for the program, your mortgage company has to sign up starting Monday. So, Summers called them, too, and hit another dead end.

"I finally got a hold of a manager in Las Vegas from Citi Mortgage, and his exact words were, 'Currently, this program does not exist to us,'" said Summers.

According to the state, there's a $154-million up for grabs. They say 17,000 people will get help on a first come, first serve basis. The question is how do you become one of the first to apply. No one seems to know.

"The lenders, once they agree, they have to train their staff, and it's their staff that is answering their phones and they don't know what to tell people because they don't even know if they're going to participate," said Dorothy Guzek, a financial counselor with GreenPath.

GreenPath is a non-profit group trying to help people get the money. She says be ready with a budget and a hardship letter, but that's about all they can tell people for now.

"This is totally mishandled. I mean, it's obvious that the people that need the money are not going to get the money until it's too late," said Summers.

People like Hal Summers, who says he has nothing but time to sit on hold, wait for answers and hope for the best.

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So what does the state have to say about all of this?  FOX 2's Huel Perkins talked to Mary Townley from Michigan's Housing Development Authority.  Watch the second video to see the interview.

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RELATED LINK:

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