LANSING – In a move that will aid struggling homeowners trying to hold on to their piece of the American Dream, the House today passed a compromise plan reached with Senate leaders that will extend a 90-day lifeline to residents at risk of foreclosure who seek help. The plan, originally proposed by House Democrats in February, awaits action in the Senate.
"Today, we are standing up for those families who are hurting in this economy," said House Speaker Andy Dillon (D-Redford Township). "Too many already have seen their dream of homeownership slip away. With this plan, we can give homeowners the time they need to work out a solution that will keep our hard-working families in their homes, our neighborhoods strong and our communities vibrant."
After weeks of negotiations between the House and Senate, the two chambers came to an agreement that will allow the House Democrats' plan to be sent to the Governor. 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).
"My top priority is keeping hard-working families in their homes. That's what will make Detroit and Michigan strong," said State Representative Bert Johnson (D-Detroit). "Those homeowners willing to reach out for assistance and sit down with a lender should have the opportunity to save their homes. No one wins in these foreclosure battles and it makes no sense for people to lose their homes when all they needed was a little more time."
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.
"When a family loses their home, we all suffer," said State Representative Andy Coulouris (D-Saginaw). "Michigan homeowners who have worked hard and played by the rules have borne the brunt of this recession, and we should stand by them in these tough times. I commend my colleagues for putting aside their differences and coming together to put Michigan residents first."