Under an agreement with Governor Gretchen Witmer and the Department of Insurance and Financial Services, many credit unions and banks have agreed to provide homeowners in Michigan with a foreclosure moratorium and mortgage payment relief during the coronavirus (COVID-19) outbreak. (To find a list of participating institutions, go to the Michigan Department of Insurance and Financial Services website.)
Under the deal, the various financial institutions have agreed not to initiate a foreclosure or eviction in Michigan for 60 days if you reach an agreement with that financial institution.
If the COVID-19 pandemic has affected you financially and you live in Michigan, you can get a 90-day forbearance, a reduction or suspension of mortgage payments. As part of the agreement, the banks also agreed not to report late payments to the credit reporting bureaus.
In addition, for at least 90 days, banks will waive or refund mortgage-related late fees.
Don’t just stop making your mortgage payments. Contact your loan servicer to ensure that you qualify for the payment suspension. Be aware that most financial institutions and their servicers are experiencing high volumes of calls and might recommend you use online services, if available, to make your request.
During the process, your bank will give you:
This mortgage payment relief is available for residential loans, and the terms of the forbearance will be agreed to between you and your financial institution.
According to a statement by the Department of Insurance and Financial Services, financial institutions can vary from these provisions if the deviation benefits the borrower or addresses specific borrower requests, concerns, or individual financial health. The Department notes that escrow, tax, and insurance matters might require individualized assistance.
Also, you might qualify for a longer forbearance under federal law. The federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, gives homeowners with federally backed mortgage loans, regardless of delinquency status, the right to get a forbearance by making a request and affirming that COVID-19 is causing a financial hardship. The forbearance period will last up to 180 days and can be extended for up to 180 more days. (To get details about CARES Act forbearances, see Mortgage Payment Relief During the Coronavirus Outbreak.)
To learn more about Michigan's relief program, called the MiMortgage Relief Partnership, contact the Department of Insurance and Financial Services at 877-999-6442 or DIFScomplaints@michigan.gov.
Effective date: April 23, 2020