LANSING – House Majority Floor Leader Kathy Angerer (D-Dundee) and State Representatives Kate Ebli (D-Monroe) and Alma Wheeler Smith (D-Salem) 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 at risk homeowners who are willing to work with their lender and housing counselor to avoid foreclosure.
"The majority of homeowners probably never imagined that they would be facing foreclosure," Angerer said. "For one reason or another – be it the loss of a job or a serious illness that accumulates expensive medical bills – many homeowners are struggling to make ends meet and pay their mortgage. This plan extends a helping hand to those homeowners by providing families with the time they need to arrange to stay in their homes."
The plan passed today 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).
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.
"Our entire community has been affected by foreclosure – not just the residents who have lost their homes," Ebli said. "The foreclosure epidemic has been a strain on Michigan's economy, chased away small businesses, driven down property values and blocked the growth and health of our communities. Protecting our homeowners and keeping them in their homes will help end the foreclosure crisis and put Michigan on the path to economic recovery."
Smith called on the Senate to pass the plan quickly.
"There is no time to delay in implementation of this important measure," Smith said. "Homeowners facing foreclosure need immediate assistance. This is not a handout, but it does offer homeowners some leverage in getting lenders to the table to work with them and a housing counselor to craft a plan which will enable them to stay in their homes. People who work hard and play by the rules deserve a little time to work things out and keep their piece of the American Dream."