Trust Fund Offers Property Tax Assistance to Detroit
Homeowners Facing Foreclosure
May, 2008
By now everyone has read the statistics. Michigan has
one of the highest foreclosure rates of any state in
the nation, and the Detroit-area had more
foreclosures in 2007 than any of the 100 largest
metropolitan regions in the country.
Fortunately, there’s good news for some struggling Detroit homeowners. The Trust Fund has teamed up with Comerica Bank to create the Tax Assistance Loan Fund (TALF) to assist Detroit residents who may be facing foreclosure because they are unable to pay their past due property taxes.
“In these tough economic times Detroit families are facing higher costs for everything from groceries to gas,” said Louise G. Guyton, Vice President Corporate and CRA Compliance Manager for Comerica Bank. “This foreclosure crisis is a major threat to the long-term health of our state’s economy, and this program will provide relief to the people who need it most.”
Here’s how the program works. To be eligible for TALF support, an applicant’s total household income cannot exceed the median income levels set forth by HUD (maximum income for a household is $66,700). Applicants must live within the City of Detroit, and their monthly debt (including the TALF loan) cannot exceed 55% of their annual gross income. TALF loans are only available for a homeowner’s primary residence and not for vacant or rental properties. Applicants must also provide proof of homeowner’s insurance before the loan closes.
“I want to stress that this and other foreclosure prevention measures are not ‘bailouts,’ as some have suggested,” said Rita Hillman, Senior Commercial Loan Officer. “This repayable loan program is a way to help struggling families get back on their feet, pay their property taxes and keep their homes.”
Maximum TALF loan amounts will be $5,000, with terms of up to 36 months. The chart [below] outlines projected loan payments on a three-year, $5,000 loan.
The Trust Fund is partnering with local community groups to provide the necessary financial counseling to these borrowers to ensure that they do not find themselves in this situation again. These groups will do the initial assessment of the borrowers to determine how they found themselves facing foreclosure, and then the Trust Fund’s loan officer will underwrite the loan from there.
Fortunately, there’s good news for some struggling Detroit homeowners. The Trust Fund has teamed up with Comerica Bank to create the Tax Assistance Loan Fund (TALF) to assist Detroit residents who may be facing foreclosure because they are unable to pay their past due property taxes.
“In these tough economic times Detroit families are facing higher costs for everything from groceries to gas,” said Louise G. Guyton, Vice President Corporate and CRA Compliance Manager for Comerica Bank. “This foreclosure crisis is a major threat to the long-term health of our state’s economy, and this program will provide relief to the people who need it most.”
Here’s how the program works. To be eligible for TALF support, an applicant’s total household income cannot exceed the median income levels set forth by HUD (maximum income for a household is $66,700). Applicants must live within the City of Detroit, and their monthly debt (including the TALF loan) cannot exceed 55% of their annual gross income. TALF loans are only available for a homeowner’s primary residence and not for vacant or rental properties. Applicants must also provide proof of homeowner’s insurance before the loan closes.
“I want to stress that this and other foreclosure prevention measures are not ‘bailouts,’ as some have suggested,” said Rita Hillman, Senior Commercial Loan Officer. “This repayable loan program is a way to help struggling families get back on their feet, pay their property taxes and keep their homes.”
Maximum TALF loan amounts will be $5,000, with terms of up to 36 months. The chart [below] outlines projected loan payments on a three-year, $5,000 loan.
The Trust Fund is partnering with local community groups to provide the necessary financial counseling to these borrowers to ensure that they do not find themselves in this situation again. These groups will do the initial assessment of the borrowers to determine how they found themselves facing foreclosure, and then the Trust Fund’s loan officer will underwrite the loan from there.