LANSING – Macomb County State Representatives today voted to pass a plan to aid struggling homeowners and help keep more Michigan families in their homes by offering a 90-day lifeline to residents at risk of foreclosure who seek help.
"So many hard-working people who are fighting to hang on to their homes just need a little more time to work things out," said State Representative Jennifer Haase (D-Richmond). "This plan gives struggling homeowners the tools to make arrangements to avoid foreclosure. By keeping more people in their homes, we can protect those families and also make sure that property values of homes in the neighborhood don't fall, which is a vicious cycle that hurts everyone."
The plan that passed the House will create a 90-day reprieve from foreclosure for homeowners 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).
"In today's economy anyone who works hard could suddenly find themselves in a situation where their home is in jeopardy because they lost their job, health care, or suffered a serious illness," said State Representative Sarah Roberts (D-St. Clair Shores)"This plan is a lifeline for these homeowners – a little extra help. Hard-working folks who deserve time to work things out."
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.
"No one wins when a home goes into foreclosure," said State Representative Jon Switalski (D-Warren). "This plan specifically helps hard-working residents hold on to their homes by giving extra time for homeowners to work things out."
In 2008, Macomb County ranked third in the state with 15,141 properties in foreclosure – a 13.5 percent increase from 2007.
"In this tough economy, too many families are losing what they have worked so hard for – their piece of the American Dream," said State Representative Fred Miller (D-Mount Clemens). "Residents who meet their obligations deserve time to sit down with a counselor and their lender and work out a solution."
In January, 1,246 foreclosures were reported in Macomb County – Warren ranked the highest with 261 and Clinton Township ranked second, reporting 162.
"Our community has been hit hard by foreclosure and we must do everything we can to help our struggling residents," said State Representative Lesia Liss (D-Warren). "When someone we know is about to lose their home, we all are about to lose something of value. This plan takes real action to fight foreclosure."
State Representative Harold Haugh (D-Roseville) said: "In these days of double-digit unemployment, national recession and an economic downturn with no end in sight, it's harder than ever to pay all the bills every month. Passing this plan today was the right thing to do for our residents and community."