LANSING – Macomb County lawmakers today voted in favor of a compromise plan reached between House and Senate leaders that will aid struggling Michigan homeowners by extending a 90-day foreclosure lifeline to residents who seek help. The plan, originally proposed in the House in February, now moves to the Senate for quick approval.
"This plan is about taking a stand for the thousands of Michigan families who are facing foreclosure," said State Representative Jon Switalski (D-Warren). "Many are losing their homes as an effect of losing their job and livelihood. This plan will give our hard-working residents a chance to work out a solution with their lender and hopefully allow more families to hold on to their homes."
After weeks of negotiations between the House and Senate, the two chambers came to an agreement that will allow the plan to be signed into law. The plan will create a 90-day lifeline for homeowners at risk of losing their home who commit to working with their lender and a housing counselor. Counselors are available through the Michigan State Housing Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
"As lawmakers it's our responsibility to put Michigan residents first," said State Representative Sarah Roberts (D-St. Clair Shores). "During these tough economic times, we must do all we can to help folks who are truly struggling. Giving them more time to sit down with their lenders and housing counselors is the right thing to do."
According to RealtyTrac, Michigan ranked sixth in the nation in foreclosures in the first quarter of 2009, with more than 33,000 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.
"Our current economic downturn is forcing too many Michigan families out of their homes," said State Representative Jennifer Haase (D-Richmond). "The plan we passed today isn't a handout – it is truly a lifeline that will help thousands of Michigan families."
In the first four months of 2009, Macomb County alone had 5,139 properties in foreclosure, according to RealtyTrac.
"Foreclosures don't just affect the individual families who lose their homes," said State Representative Lesia Liss (D-Warren). "As we have seen, they affect entire neighborhoods and communities. It takes a lot for people to reach out and ask for help, but those who do deserve every opportunity to straighten things out."
State Representative Fred Miller (D-Mount Clemens) said, "Michigan families are hurting and we have to stand by them in tough times. Being a leader is about putting aside differences and working toward a common goal. I commend my colleagues in both the House and Senate for working together in the best interests of Michigan residents and creating a meaningful solution to help working families stay in their homes."