LANSING – In a victory for struggling families throughout Michigan, a plan supported by State Representatives Jon Switalski (D-Warren) and Jennifer Haase (D-Richmond) will go into effect on Sunday, providing a 90-day lifeline for homeowners at risk of losing their home to foreclosure.
"In this tough economy, any one of us could lose our job or face a catastrophic illness and be unable to keep up with our mortgage payments," Switalski said. "Thanks to this plan, families who fall behind will now have the time they need to sit down with their lenders and housing counselors. I encourage struggling homeowners to take advantage of this opportunity, and hopefully work out a solution to stay in their homes."
The new law creates a 90-day lifeline for homeowners at risk of losing their home who commit to working with their lender and a housing counselor to find a solution. Counselors are available at no cost through the Michigan State Housing Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
To learn how to get help through the program, Warren and Sterling Heights homeowners can visit Switalski's Web site. Northern Macomb County homeowners can visit Haase's Web site.
Michigan ranked sixth in the nation in foreclosures in the first quarter of 2009, according to RealtyTrac, with more than 33,000 properties in foreclosure, and Macomb County alone had 5,139 properties in foreclosure. In 2008, more than 145,000 Michigan properties statewide were in foreclosure – a 21 percent increase from 2007 and a 108 percent increase from 2006.
"The foreclosure epidemic continues to grip our communities and state," Haase said. "It is destroying once vibrant communities, leaving vacant homes and closed businesses behind. This new law gives thousands of Michigan families what they deserve – the opportunity to hold onto their piece of the American Dream."