LANSING – Wayne County State Representatives Deb Kennedy (D-Brownstown), Doug Geiss (D-Taylor), Bob Constan (D-Dearborn Heights) and Gino H. Polidori (D-Dearborn) today voted to pass a plan to aid struggling homeowners and help keep more Michigan families in their homes by offering a 90-day lifeline to residents at risk of foreclosure who seek help.
"Every time a home goes into foreclosure the effect is felt by the entire community," Kennedy said. "The family must deal with the devastation of losing their piece of the American Dream. Home values are driven down. Vacant homes attract crime. And businesses begin to look elsewhere when deciding where to expand or invest. We must stop this vicious cycle, and this plan will help do just that."
The plan that passed the House 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).
"Many families already are stretching their monthly budgets to the breaking point, only to be hit with a mortgage payment that doubles or triples," Geiss said. "Honest, hard-working homeowners don't deserve to lose their homes to foreclosure. This plan will give them a lifeline and help them avoid losing their homes altogether."
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.
"In this tough economy, we need to support our working families and protect homeownership – the cornerstone of the middle class," Constan said. "The plan we passed today will be an invaluable tool for homeowners and ensures those who are struggling will be able to hang on to their homes. I urge my colleagues in the Senate to take swift action on this common-sense plan."
In Wayne County, there were 3,361 foreclosures in January – one out of every 249 housing units, according to RealtyTrac.
"Wayne County has been hit especially hard by the foreclosure crisis in our state," Polidori said. "In many cases, the biggest obstacle homeowners faced was simply not having enough time. This plan will give our struggling homeowners more time to work out a solution with their lenders, and keep more families in their homes."