LANSING – In a victory for struggling families throughout Michigan, a plan originally proposed by State Representative Andy Coulouris (D-Saginaw) will go into effect on Sunday, providing a 90-day lifeline for homeowners at risk of losing their home to foreclosure.
"Thousands of struggling families will now have the time and assistance they need to find a way to keep their homes," Coulouris said. "The foreclosure crisis has put a strain on communities throughout the state, tearing apart families and leaving behind neighborhoods marked by empty homes and businesses. This isn't a bailout for homeowners – it's a lifeline for the struggling families that have worked hard and played by the rules, yet found themselves without a job or a means to pay the mortgage."
The new law creates a 90-day lifeline for homeowners at risk of losing their home who commit to working with their lender and a housing counselor to find a solution. Counselors are available at no cost through the Michigan State Housing Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
Homeowners can visit Coulouris' Web site, coulouris.housedems.com, to learn how to get help through the program.
Michigan ranked sixth in the nation in foreclosures in the first quarter of 2009, according to RealtyTrac, 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.
"For many, a home is the realization of their piece of the American Dream," Coulouris said. "But in this economy,
anyone could end up staring at a pink slip and left wondering how they're going to pay their mortgage. This plan
will ensure they get the chance to work with their lender and stay in their home."