The Michigan State Housing Development Authority (MSHDA) offers several programs to assist Michigan residents with housing needs, including mortgage and rental assistance. One of the programs offered by MSHDA is the repayment agreement, which helps homeowners who are struggling to keep up with their mortgage payments.

A repayment agreement is a contract between the homeowner and the mortgage lender that establishes a plan for repaying delinquent payments on the mortgage. It is a formal agreement that is designed to help homeowners catch up on their payments and avoid foreclosure.

MSHDA’s repayment agreement program is specifically designed for homeowners who are struggling to keep up with their mortgage payments. To be eligible for the program, homeowners must be able to demonstrate that they are experiencing financial hardship due to circumstances beyond their control, such as a job loss, illness, or unexpected expenses.

Under the repayment agreement program, MSHDA works with the homeowner and the mortgage lender to create an affordable payment plan. The homeowner agrees to make regular payments on the delinquent amount, in addition to their regular monthly mortgage payments.

The repayment plan is typically spread out over a period of several months or years, depending on the amount of the delinquent payments and the homeowner’s ability to make payments. MSHDA may also offer loan modification assistance to reduce the homeowner’s overall monthly mortgage payment.

In addition to helping homeowners avoid foreclosure, the repayment agreement program may also have a positive impact on their credit score. Late or missed mortgage payments can have a negative impact on credit scores, and a foreclosure can have even more serious consequences. By working with MSHDA to establish a repayment plan and avoid foreclosure, homeowners may be able to protect their credit score and reduce the negative impact of missed payments.

If you are a Michigan homeowner who is struggling to keep up with your mortgage payments, MSHDA’s repayment agreement program may be able to help. Contact MSHDA or a HUD-approved housing counselor to learn more about the program and determine your eligibility. With the right assistance, you can get back on track with your mortgage payments and avoid foreclosure.