"We are in the midst of very tough times, the likes of which we haven't seen in decades," said House Speaker Andy Dillon (D-Redford Township). "Because of this economic downturn, too many hard-working families are seeing their piece of the American Dream slip away. Often times, homeowners who are facing foreclosure just need time to sit down with their lender and work out a solution. This plan will give struggling homeowners that chance. I commend Representative Andy Coulouris, along with the consumer groups and lenders, who stepped up to take meaningful action to fight Michigan's foreclosure crisis."
The House Democrats' plan 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).
"Most homeowners who face foreclosure never thought they'd find themselves in that position," said State Representative Andy Coulouris (D-Saginaw), lead sponsor of the plan. "This plan is not a bailout, it's a lifeline for our hard-working homeowners who deserve a little extra time to work things out. Helping homeowners find a way to stay in their home is the right thing to do not only for them, but for taxpayers and our economy as well."
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.
"Nobody wins when a hard-working family loses their home," said State Representative Lisa Brown (D-West Bloomfield). "Foreclosures don't just hurt individuals – they affect entire neighborhoods, businesses and communities. Giving struggling homeowners more time to seek help and straighten things out with their lender will help more of our families hold on to their most precious investment."