In a welcome move for Michigan families struggling to make ends meet in the global economic downturn, the Governor has signed legislation originally proposed by House Democrats that extends a 90-day lifeline for homeowners at risk of foreclosure who seek help. The plan was held up in the Republican-controlled Senate until negotiations between the two chambers enabled a deal to be reached.
"When a family loses their home, we all suffer," said State Representative Andy Coulouris (Saginaw), a sponsor of the plan. "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. The housing crisis has been at the head of our economic crisis, and we must address this problem in order to get Michigan back on its feet."
The legislation creates a 90-day reprieve for homeowners at risk of foreclosure, as long as they commit to working with their lender and a housing counselor. This extra time will allow residents to find a solution to their situation. Housing counselors will be available from the U.S Department of Housing and Urban Development (HUD) and the Michigan State Housing Development Authority (MSHDA), and will work to help educate homeowners about options available that they may not be aware of.
More than 33,000 properties in Michigan were in foreclosure in the first quarter of 2009, ranking the state sixth in the nation. This follows a grim 2008 which saw more than 145,000 properties across the state file for foreclosure.
"Foreclosures have torn apart the fabric of our communities and hurt our urban areas tremendously," said State Representative Shanelle Jackson (Detroit), also a plan sponsor. "Our economic recovery depends on keeping our families in their homes. This new option is great news for Michigan."