LANSING – House Democrats today unveiled a plan to keep more Michigan families in their homes by putting a 90-day moratorium on foreclosures for struggling homeowners who seek help.
"As this economic downturn worsens, more hard-working people all over Michigan are losing their piece of the American Dream," said House Speaker Andy Dillon (D-Redford Township). "No one benefits when a home goes into foreclosure. This plan gives homeowners a vital lifeline by bringing them together with their lenders to work out a solution. Keeping more working families in their homes is in the best interests of our residents, our communities and our economy. I want to thank Representative Andy Coulouris, consumer groups and lenders for their help in crafting this plan."
The House Democrats' plan provides 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 and Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
"We need to stand by our working families in these days of double-digit unemployment and recession," said State Representative Kathy Angerer (D-Dundee). "It's a lot tougher right now to make that mortgage payment each month. People who are trying to stay in their homes and meet their obligations deserve time to sit down with a counselor and their lender and work out a way to do that."
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.
"Losing a home is a devastating blow to any family, and the foreclosure epidemic is hurting entire communities," said State Representative Andy Coulouris (D-Saginaw). "Vacant homes drive down property values, invite criminal behavior, and deter new businesses from setting up shop. By giving homeowners time to find alternatives to foreclosure, this plan will support our working families and make our communities and our economy stronger."