Michigan Mortgage Relief Program: What Replaced MIHAF and Where Homeowners Get Help Now

What happened to the Michigan mortgage relief program

The Michigan Homeowner Assistance Fund (MIHAF) was run by the Michigan State Housing Development Authority (MSHDA) with federal pandemic money. It offered up to $25,000 per household to catch up on mortgage payments, property taxes, land contract payments, and some utilities. MSHDA closed the application portal on December 8, 2023, and the state now says the program is officially closed because its funds are exhausted. MSHDA reported that more than 26,000 Michigan residents received help, at an average of about $7,600 per household.

An earlier program, Step Forward Michigan, also stopped accepting new applicants years ago. If you see a website still promoting either program as open, treat it with caution.

Free housing counseling in Michigan

A housing counselor is the best first call, and it costs nothing. HUD-approved counselors, including agencies in MSHDA’s statewide network, help with mortgage delinquency and default. They review your budget, explain your options, and can contact your servicer with you. You can find one through HUD’s housing counselor search, by calling 800-569-4287, or through Michigan’s housing education agency list. Michigan State University Extension also has certified housing counselors in many counties.

If you think the foreclosure has a legal problem, or you have a court date, contact legal aid. Michigan Legal Help has free guides and can point you to a local legal aid office.

Options your mortgage servicer can offer

Your servicer is the company you send your payment to. Ask about “loss mitigation,” the industry term for ways to avoid foreclosure. The Consumer Financial Protection Bureau explains the common options:

• Repayment plan: pay your regular amount plus part of what you owe each month.
• Forbearance: payments are paused or reduced for a short time, then repaid later.
• Loan modification: the loan terms change, for example a longer term or a lower rate, to make payments affordable.
• Partial claim or deferral: some FHA, VA, USDA, and Fannie Mae or Freddie Mac loans can move missed payments to the end of the loan.
• Short sale or deed in lieu: ways to leave the home without a foreclosure if keeping it isn’t possible.

Under federal rules, servicers generally can’t start foreclosure until you are more than 120 days behind. Send a complete loss mitigation application as early as you can, because a complete application can give you added protections.

State Emergency Relief for home ownership

The Michigan Department of Health and Human Services runs State Emergency Relief (SER). Besides energy and rent help, SER has a home ownership services part. It can pay house payments (mortgage, land contract, or mobile home contract), property taxes and fees, and some required insurance, but only when the payment will save a home facing mortgage foreclosure, land contract forfeiture, or tax foreclosure. According to the MDHHS emergency relief manual, the lifetime home ownership services maximum is $2,000, combined across all of these payments.

SER also requires that you can afford your housing going forward, and it has income and asset tests. A $2,000 payment won’t solve a large arrearage on its own, but it can close a gap when you also have a servicer plan or other help. Apply through MI Bridges or your local MDHHS office, and confirm the current cap with your caseworker. Our Michigan hardship relief guide covers SER income limits and energy help.

How mortgage foreclosure works in Michigan

Most Michigan mortgage foreclosures happen outside of court, through a process called foreclosure by advertisement. Here is how it usually goes, based on Michigan Legal Help:

The redemption period can be different for abandoned homes and some other properties, so check the date on your own certificate of sale at the county Register of Deeds. Land contracts follow different forfeiture rules.

Property tax foreclosure and how to stop it

Many Michigan homeowners lose homes over unpaid property taxes, not the mortgage. The process takes about three years. Taxes become delinquent on March 1 after the year they are due, the property is forfeited to the county treasurer a year later, and the county can foreclose the following year. The MSU Law Tax Clinic explains that you can usually pay until March 31 of that third year. For example, Macomb County lists March 31 as the deadline to pay 2023 and prior taxes or set up a payment plan. Dates can vary, so confirm yours with your county treasurer.

Payment plans and hardship extensions

Many county treasurers offer payment plans or hardship extensions, though they are not always required to. Call early, bring a simple monthly budget, and ask what down payment they need.

Leftover money after a tax foreclosure

If your home was sold after a tax foreclosure for more than you owed, you may be able to claim the leftover money. Michigan Legal Help explains the claim process and the July 1 deadline.

Tax credits and exemptions that lower the bill

• Poverty exemption: under Michigan law, eligible low-income owners can be exempt from all or part of their property taxes. Apply each year with your city or township assessor; the local Board of Review decides.
• Pay As You Stay (PAYS): where the county has opted in, PAYS may reduce delinquent taxes for owners who qualify for the poverty exemption.
• Principal residence exemption: if the home is your main residence, make sure this exemption is on file with your assessor.
• Homestead Property Tax Credit: filed on Form MI-1040CR. For tax year 2025, the state lists a maximum credit of $1,900 and a household resources limit of $71,500; see the Michigan Treasury tax year 2025 guidance.

Michigan homeowner help at a glance

What documents do I need to apply?

Expect to show photo ID, Social Security numbers for the people applying, proof of income for the last 30 days, and proof of where you live, plus any paper that shows the emergency itself. Our document checklist explains what counts for each item and what to do if something is missing. If you don't have everything yet, apply anyway and ask the office how long you have to bring the rest.

Steps to take this week

1. Open every letter from your servicer and county, and note any sale or deadline date.
2. Call a HUD-approved housing counselor at 800-569-4287.
3. Call your servicer and ask for a loss mitigation application.
4. Check your property tax status with the county treasurer.
5. Apply for State Emergency Relief if a foreclosure or forfeiture is close.
6. Ask your assessor about the poverty exemption, and file the Homestead Property Tax Credit.
7. Dial 211 for local help with other bills so more money can go to the house.

Michigan holds unclaimed money for many residents; our Michigan unclaimed property guide shows how to search.

Foreclosure rescue scams

People facing foreclosure are a target for scams. Be wary of anyone who charges an upfront fee to “save” your home, tells you to stop talking to your servicer, asks you to sign over your deed, or promises results. The CFPB guide to foreclosure relief scams lists the warning signs.

Related guides

• Foreclosure assistance in Michigan
• Michigan hardship relief
• Michigan utility relief programs
• Mortgage relief programs

Frequently asked questions

This guide is general information, not legal advice. Foreclosure rules and program funding change, so confirm dates with your servicer, county, or a lawyer. National Relief Program is an independent website and is not affiliated with MSHDA, MDHHS, or any lender.