LANSING – A month after enactment of a plan supported by State Representatives Jon Switalski (D-Warren), Sarah Roberts (D-St. Clair Shores) and Jennifer Haase (D-Richmond) that provides a 90-day lifeline to homeowners at risk of losing their homes, the number of local and statewide foreclosures have dropped dramatically. Macomb County foreclosures dropped 46 percent since June and the number of foreclosures statewide has plunged 39 percent, even as foreclosures across the country continue to rise amid a still-sluggish economy.
"The report shows that our 90-day lifeline really is helping to protect Michigan homeowners," Switalski said. "Giving them time to sit down with their lenders and housing counselors is exactly what our residents need to hold on to their home. I'm pleased with the success of this program and I encourage homeowners who have fallen on hard times to take advantage of this opportunity."
Michigan dropped from seventh to 19th in the nation in foreclosure filings from June to July, a
39 percent decline, according to RealtyTrac, an online real estate information site. The Irvine, Calif.-based company
cited the House plan as a key factor in the dramatic drop in Michigan's foreclosure rate. Locally, the number of
foreclosures plunged 46 percent in Macomb County. Overall, U.S. foreclosures rose
7 percent in July.
"In these tough economic times any one of us could find ourselves unable to pay the mortgage and need a helping hand," Roberts said. "I've heard from many hard-working families facing foreclosure that said they simply need time to work out a solution. This lifeline is giving them exactly what they need while helping them get back on their feet."
The new law, which took effect on July 5, creates a 90-day lifeline for homeowners in danger of losing their home if they commit to working with their lender and an accredited housing counselor to find a solution. Counselors are available at no cost from 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, house.mi.gov/jswitalski. St. Clair Shores and Harrison Township residents can visit Roberts' Web site, house.mi.gov/sroberts. Northern Macomb County homeowners can visit Haase's Web site, house.mi.gov/jhaase.
"The foreclosure epidemic runs deeper than just a family losing their home," Haase said. "The drop in foreclosures is a positive upturn for our community, state and economy. This 90-day lifeline truly is giving our residents the chance to hold onto their piece of the American Dream."