LANSING – Macomb County State Representatives today threw their support behind a plan to aid struggling homeowners by creating a 90-day foreclosure moratorium for those who seek help.
"Many families struggling with foreclosure feel they don't have enough time to save their homes, said State Representative Sarah Roberts (D-St. Clair Shores). "This plan not only gives struggling homeowners more time, it also gives them options and help they may need to keep their home."
The plan unveiled today provides a 90-day reprieve from foreclosure for homeowners who commit to working with their lender and a housing counselor to reach a solution. Counselors are available through the Michigan State Housing and Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
"It is heartbreaking to see so many families losing the homes they've worked so hard for," said State Representative Jennifer Haase (D-Richmond). "Giving struggling homeowners a chance to sit down with their lender and work things out will keep more families in their homes and help stop the negative ripple effect that the foreclosure epidemic causes in our neighborhoods."
Michigan ranks seventh in the nation for foreclosures, according to RealtyTrac. More than 145,000 properties were in foreclosure in 2008 – a 21 percent increase from 2007 and a 108 percent increase from 2006. In January of this year alone, 11,418 foreclosures were reported in Michigan.
"Michigan is facing one of the worst economic downturns in recent history and we need extra protections in place for our homeowners," said State Representative Jon Switalski (D-Warren) "We need to keep more people in their homes, prevent lower property values and provide incentives to businesses to invest in Michigan."
In 2008, Macomb County ranked third in the state with 15,141 properties in foreclosure – a 13.5 percent increase from 2007.
"As we have seen in Warren, foreclosures don't just hurt individual families, they hurt entire communities," said State Representative Lesia Liss (D-Warren). "This plan is just one more way we are fighting to bring real relief to our homeowners in danger of losing their most precious investment."
Just last month, 1,246 foreclosures were reported in Macomb County – Warren ranked the highest with 261 and Roseville and Eastpointe ranked second, reporting 200.
"Foreclosures in our community rank among the highest in Macomb County," said State Representative Harold Haugh (D-Roseville). "Too many of our hard-working families are losing their homes, and this plan is a step in the right direction toward stopping the crisis."
State Representative Fred Miller (D- Mount Clemens) also lauded today's plan: "As the number of homes in foreclosure continues to rise, so does the number of families losing their piece of the American Dream. This plan will give homeowners the chance to truly communicate with their lenders and will hopefully allow them to keep their homes."