Michigan sets up mortgage relief program to give 3-month break from mortgage payments
For sale by owner sign outside a house on Flamingo Drive. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images)
Michigan Governor Gretchen Whitmer and the state's Department of Insurance and Financial Services (DIFS) have announced a mortgage relief program with over 200 banks and credit unions to offer relief for homeowners struggling to pay their mortgages.
Whitmer and DIFS announced the creation of the MiMortgage Relief Partnership to offer a 90-day grace period for all mortgage payments for homeowners in need of assistance.
“No one should have to worry about losing their home during the COVID-19 pandemic,” said Governor Whitmer. “With the MiMortgage Relief Partnership, Michigan’s credit unions, banks, and lenders have stepped to the plate to help our residents who are suffering financial losses due to COVID-19 by providing a 90-day grace period for mortgage payments.”
The plan allows borrowers to take the following actions:
Providing affected borrowers with a 90-day grace period for all mortgage payments. The grace period will be a forbearance, which allows borrowers to reduce or delay their monthly mortgage payments. Forbearance does not erase any amount that you ow, you will have to repay any missed or reduced payments at a later date.
The participating institutions will also do the following:
- Provide a streamlined process for requesting forbearance for COVID-19-related reasons, supported with available documentation;
- Confirm approval of and terms of their forbearance program (which should include reasonable solutions for resuming payments at the end of the forbearance term); and
- Where appropriate, provide the opportunity for borrowers to extend a forbearance agreement if they continue to experience hardship due to COVID-19.
Providing relief from mortgage-related late fees and charges for 90 days. For affected borrowers who reach an agreement with their financial institution, financial institutions will waive or refund mortgage-related late fees for at least 90 days.
Foregoing new foreclosures for 60 days. Financial institutions will not initiate any foreclosure sales or evictions for 60 days for affected borrowers who reach an agreement with their financial institution.
If a borrower requests the mortgage relief, lenders will not report it on their credit scores.
To see if your bank is participating in the program, check out Michigan's website.
To get help, contact your bank before your loan becomes delinquent. DIFS never advises borrowers to stop paying their loan payments.