How To Pay Your Mortgage When You’re Broke | Step Forward Michigan Program

Are you struggling to pay your mortgage each month? Have you fallen behind and delinquent on your monthly mortgage payments? I’m sharing ways on how to pay your mortgage each month, plus how to pay your mortgage when you are seriously behind. If you are a Michigan resident, learn about the Step Forward Michigan program in this sponsored post collaboration with MSHDA.

How To Pay Your Mortgage When You’re Broke | Step Forward Michigan Program

Buying our first home several years ago brought on a sense of pride and ownership, but also a few worries.

• What if emergencies pop up, like needing a new furnace, water damage, new roof, etc.?
• What if something happened and we couldn’t pay our mortgage each month?

These are the things we think about when it comes to owning a home. Of course, having an emergency savings fund is crucial, and budgeting and being financially savvy is important.

However, sometimes life has a funny way of throwing you a curveball. When the last financial crisis happened for our country a few years ago, many people were affected by this. Many people right here in Michigan lost their jobs, homes, and financial security.

And for those that didn’t lose their homes, it was a struggle to meet the mortgage payment each month. Trying to rebuild after you hit rock bottom can be challenging, but all hope is not lost.

Tips on paying your mortgage

If you’ve hit a point where you are close to losing your home or struggling to make the mortgage payment each month, I’m sharing a few tips for you to consider.

Find extra income. You may be working full-time now, but finding a way to bring in extra money could help make ends meet each month. There are several work at home opportunities, ways to make extra money with a side hustle, and unique ways to bring in extra income. I share a variety of ways to save in our 52-week challenge. 

Cut the necessities. This may be something you have already done, but it can save a lot of money each month. The cable bill, the internet, Netflix, monthly digital apps, etc., can all add up. If you haven’t cut the cable yet, consider doing this. Also, look at dropping your current cell phone plan for a cheaper one.

Use Coupons. If you’ve been a long-time reader here, then you know we are always sharing deals and how to use coupons. Using coupons for several years has allotted our family extra money to pay down on our mortgage, go on vacations, and build up a savings account. While the couponing game has changed over the years, it is still possible to use coupons, rebate apps, reward programs, and meal planning to save money on your grocery bill. By doing this, you will be able to come up with a few extra coins to add to your mortgage bill.

Communicate. It is important to talk to your lender about late and missed payments. If you have lost your job, and/or struggling to make payments each month, call them. If you have a local lender, make an appointment with a loan specialist and go in and talk to them about your current financial situation. Most lenders have grace periods, hardship programs and other short-term options to help you get back on track. They may also have options such as reducing your interest rate, modifying your loan terms, and even refinancing your loan.  However, the sooner you can address this issue with your lender, the better.

Rent or Sell. When all else fails, you may have to look at selling or renting your home. Depending on your household, you may want to consider renting a room out to a college student or a single person. I know several people who have done this to help with their mortgage payments each month.

Government help. Sometimes people think help from the government can be embarrassing. However, when it comes to saving your home, take all the help you can get! Many states have programs to help eligible homeowners. For example, here in Michigan, we have a program called Step Forward Michigan, also known as Michigan’s Hardest Hit Fund® loan program.

Step Forward Michigan Program

Step Forward Michigan was designed to help current eligible homeowners in the state of Michigan stay in their home. This is a federally funded loan program for eligible homeowners who need assistance with their delinquent mortgage payments, property taxes, and condominium association fees. If you qualify, you can receive up to $30,000 in interest-free loan paid directly to your lender, condo association, or county treasurer. As long as the property you are requesting help for is your primary residence for at least five years after obtaining assistance, you do not have to pay the loan back. How awesome is that?

How does it work?

To qualify, you will need to head over to Step Forward Michigan’s website and complete the instructions. If you do qualify for this program, you can receive up to $30,000 paid directly to your lender, condo association, or county treasurer.

Am I eligible?

To qualify for the Step Forward Michigan Program, homeowners must:

• Be a Michigan resident

• Have an ownership interest in the property and be able to sign a new mortgage lien on property

• Have experienced a qualify involuntary hardship {A qualifying hardship is an unexpected event beyond homeowners’ control that affected their ability to keep making their payments. The date of the hardship event must be before they fell behind on payments. Qualifying events include a medical issue, job loss or underemployment, death in the family, divorce, being on unemployment, or a critical out-of-pocket expense such as household repairs.}

• Occupy the property as your primary residence, both presently and at the time of the qualifying hardship event

• Have income necessary to sustain ongoing mortgage, condo association fees, and/or property tax payments.
• Have limited cash reserves (not exceeding $10,000).

A few things to keep in mind:

• To qualify for this program, your lender must be a participating partner in the Step Forward Michigan program.
• If you have ever been convicted of a financial-related felony, including larceny, theft, fraud, forgery, money laundering and/or tax evasion in the last 10 years, you are not eligible for the Step Forward Michigan program.

You can learn more about the Step Forward Michigan program by checking out these frequently asked questions!

*If you don’t live in Michigan, do a google search to see what your state has a similar program.

Being homeless is not the expected outcome. You may have to fight to save your home, but it’s worth it. Being a Mom of three boys- having a permanent and safe place for my kids to grow up in is important to me. We’ve gone through our shares of financial hardships and struggles. I’m glad to know there are programs like this out there to help homeowners. When it comes to owning a home, there will be financial hardships and unexpected incidents, so work on building up an emergency fund, learning how to coupon, budgeting, and finding unique ways to save money will help you down the road.

If you, or if you know someone who is a current homeowner in Michigan and need help paying their delinquent mortgage payments, property taxes, and condominium association fees, tell them about the Step Forward Michigan program and share this post with them!

Do you have tips on ways to pay your mortgage bill or from becoming delinquent? Drop me a line below and let me know!