Michigan's Hardest Hit Fund Program

Michigan’s Hardest Hit Fund program, called Step Forward Michigan, provides funds to help a homeowner catch up on a delinquent mortgage, property taxes, or condominium fees.

In 2010, the U.S. Department of the Treasury created the Hardest Hit Fund to provide targeted aid to homeowners in those states most affected by the housing market crash. As part of this program, Michigan received over $498 million to provide assistance to homeowners who are struggling to make their mortgage payments. While some other states' Hardest Hit Fund programs have stopped accepting applicants due to running out of funding, as of late 2017, $38 million is still available in Michigan.

Read on to learn about the different types of help available through Michigan’s Hardest Hit Fund program, called Step Forward Michigan, and find out if you may be eligible for assistance.

Step Forward Michigan

Step Forward Michigan provides money to help a homeowner catch up on a delinquent mortgage, property taxes, or condominium fees. Funds go directly to the lender, county treasurer, or condo association to reinstate the account, if an eligible hardship caused the delinquency.

Eligible hardships include:

  • a medical event
  • job loss or underemployment
  • occupying homeowner’s receipt of Michigan unemployment benefits
  • death
  • divorce, and
  • a one-time critical out-of-pocket expense, such as household repairs

    How Step Forward Michigan Works

    Assistance is generally provided in the form of a 0% interest, forgivable loan secured by a junior lien that is recorded against the property. No payments are required from the homeowner and the loan is forgiven at 20% per year so long as the property remains your primary residence for five years. At the end of five years, the lien is released.

    Borrower Eligibility

    To be eligible for Step Forward Michigan assistance, you must meet all of the below criteria.

    • You are a Michigan resident.
    • You own the property and occupy it as your primary residence.
    • You have limited cash reserves no greater than $10,000.
    • You have the ability to sustain ongoing payments.

      Home Eligibility Criteria

      Additionally, your existing mortgage and the property securing the mortgage must meet the below criteria, among other things.

      • The property is a single-family home, condominium, or a one-to four unit dwelling (if you occupy one unit as your primary residence).
      • The property is not abandoned, vacant, or condemned.
      • The property is not currently listed for sale.

      Mobile or manufactured homes are eligible if on a foundation, permanently affixed and taxed as real estate. Mobile homes located in a mobile/manufactured home park are not eligible. Learn more about what happens if you are struggling to pay your mobile home loan.

      The eligibility requirements for Hardest Hit programs change frequently. For the latest information on whether you're eligible, go to www.StepForwardMichigan.org.

      How to Find Out if You're Eligible and Apply

      You can find out if you're eligible for assistance from the program by going to www.StepForwardMichigan.org, and click on "Do I qualify?" To apply for assistance, hit the “Apply Now” button after finding out whether you qualify.

      For More Information

      If you would like more information about Step Forward Michigan, you may call 866-946-7432 or email StepForward@michigan.gov.

      Talk to a Lawyer

      Start here to find foreclosure lawyers near you.

      How it Works

      1. Briefly tell us about your case
      2. Provide your contact information
      3. Choose attorneys to contact you
      FACING FORECLOSURE ?

      Talk to a Foreclosure attorney.

      We've helped 75 clients find attorneys today.

      How It Works

      1. Briefly tell us about your case
      2. Provide your contact information
      3. Choose attorneys to contact you