Michigan Foreclosure Assistance Programs in 2026: What Still Exists, and What Closed

When money gets tight, the first thing most Michigan homeowners search for is a grant — a pot of money somewhere that pays the arrears and makes the problem go away. It is a fair thing to hope for. It is also the place where a lot of people lose weeks they could not afford to lose, because the big pandemic-era fund that paid arrears directly is closed, and the help that is still available works differently than a grant.

Here is the honest map: what still exists in Michigan in 2026, who it is for, what it actually pays, and the order to work through it. Most of it is free, and most of it works better the earlier you call.

Start with the thing that is free, statewide, and open right now

Michigan's foreclosure-prevention system runs through HUD-certified housing counselors, coordinated by the Michigan State Housing Development Authority (MSHDA). A counselor is not a salesperson and does not charge you. They read your mortgage statement and notices, calculate what your servicer is likely to approve, submit the paperwork, and follow up on it — which matters, because servicer loss-mitigation files fall apart over missing documents more often than over the numbers.

• MSHDA Foreclosure Prevention Call Center: 866-946-7432
• HUD's national housing counseling line: 800-569-4287 (finds an approved agency near you)
• MSHDA Housing Education locator: on michigan.gov/mshda, listing approved agencies by county

Established Michigan agencies in this network include Southwest Solutions and Michigan Legal Services in Detroit, the Center for Financial Health in Lansing, OLHSA in Oakland and Livingston counties, Mid Michigan Community Action, and Habitat for Humanity of Michigan. Ask any agency whether they are HUD-approved before you hand over documents, and never pay an upfront fee for foreclosure help — Michigan's Credit Services Protection Act (MCL 445.1821 and following) prohibits charging in advance for that kind of assistance.

Understand what happened to the grant money

The Michigan Homeowner Assistance Fund (MIHAF) was the real thing: federal American Rescue Plan money, administered by MSHDA, that paid delinquent mortgage payments, property taxes, condo fees, and utilities for homeowners with a pandemic-related hardship, up to a substantial per-household cap. It ran out. MSHDA stopped taking new applications on December 8, 2023, and closed the waiting list on December 28, 2023. Step Forward Michigan, the older Hardest Hit Fund program that offered rescue funds for mortgages and taxes, ended before it.

You will still find both programs described on county treasurer pages, nonprofit sites, and blog posts that were never updated. Some sites even advertise application help for them. Treat any page offering MIHAF or Step Forward money today as out of date — and treat anyone charging you to apply as a reason to walk away. There is no current statewide Michigan fund that writes a check for mortgage arrears.

What still pays real money in 2026

No single program replaced MIHAF, but several narrower ones survived, and stacked together they free up cash that can go toward the mortgage or the tax bill.

Utility and tax relief rarely feels like foreclosure help, and that is exactly why it gets skipped. If a hardship exemption removes a large summer tax bill and an energy program covers winter heat, the household budget that could not absorb a repayment plan sometimes can. Detroit homeowners specifically should ask about HOPE and the Pay As You Stay program — we walk through both in our guide to Detroit property tax foreclosure, HOPE, and PAYS.

Then work your servicer's options — these are the real "programs"

For mortgage arrears in 2026, the meaningful relief is loss mitigation with your servicer, and federal rules give you room to use it. Servicers generally cannot make a first foreclosure filing until the loan is more than 120 days delinquent (12 CFR 1024.41(f)), and once you submit a complete application more than 37 days before a scheduled sale, the anti-dual-tracking rule bars them from proceeding to sale while it is under review (1024.41(g)).

The standard menu is reinstatement, a repayment plan, mortgage forbearance in short increments, payment deferral that moves missed payments to the end of the loan, or a modification. Government-backed loans have their own versions, including partial-claim style tools that place the arrears in a junior, non-interest-bearing lien due when you sell, refinance, or pay off. A counselor will know which applies to your loan type. Our overview of foreclosure alternatives in Michigan compares the tradeoffs side by side, and how to stop foreclosure in Michigan lays out the full timeline you are working against.

Make the calls in this order

1. Today: call MSHDA at 866-946-7432 or HUD at 800-569-4287 and book a counseling appointment. Free, and it starts a paper trail.
2. This week: ask your servicer's loss-mitigation department for the loss-mitigation application and a written payoff and reinstatement quote (they owe you a payoff figure within seven business days under 12 CFR 1026.36(c)(3)).
3. This week: apply for SER through MI Bridges and contact THAW or your local MEAP provider for utilities.
4. Before the next Board of Review: file Form 5737 if the household income qualifies, and ask the county treasurer about an installment agreement for delinquent taxes.
5. Anytime: dial 211 for local church, community-action, and hardship funds that never advertise.

Keep a one-page log of every call: date, name, what they said. Homeowners who can show a documented, timely application have far more leverage if a sale gets scheduled anyway.

If the arrears are bigger than any program

Sometimes the math simply does not close. Counseling is free and the utility and tax programs are worth having, but if you are tens of thousands behind and a sheriff sale date is near, the honest answer is that no Michigan grant will cover it. What can cover it is equity — the value you have already built in the house. That is the option most homeowners never get told about: using the equity to clear the arrears and reset, rather than letting an auction convert it into someone else's profit.

The bottom line

The grant era ended, but the help did not. A free HUD-certified counselor, federal loss-mitigation protections, utility and tax relief that clears room in the budget, and your own equity are four real tools, and none of them require you to pay anyone in advance. Make the first call this week. Almost every option on this list gets stronger the more calendar you have left.

All In Horizon provides asset-based bridge financing. Loan availability, terms, and timing depend on the property, equity position, and exit plan, and are subject to underwriting. This article is educational and is not financial, legal, or tax advice. Nothing here is a substitute for guidance from a licensed attorney.