LANSING – State Representative Marc Corriveau (D-Northville) today voted for a comprehensive, bipartisan plan to establish the Taxpayer Home Protection Act, which will help homeowners at risk of losing their homes to tax foreclosure get extensions and exemptions on their property taxes.
"With so many of our working families struggling to pay the bills every month, we need extra protections in place," Corriveau said. "The foreclosure crisis has hit hard in Michigan, and many families have already gone through the devastation of losing their homes. This plan will help more families avoid the same fate by arming them with the information and resources they need to avoid going into tax foreclosure."
The bipartisan Taxpayer Home Protection Act aims to streamline the process for struggling homeowners applying for an exemption to the property tax, as well as adds additional notification requirements so homeowners know exactly when their property could be foreclosed on and what forms of assistance are available to them. The plan also will exclude water and utility bills from items included in delinquent taxes that can trigger foreclosure and give local government more flexibility in repaying delinquent taxes before foreclosure.
According to RealtyTrac, Michigan reported 136,000 foreclosure filings in 2007 – a 68 percent increase from 2006 and 282 percent increase from 2005. Since the beginning of 2008, Michigan has reported a total of 62,138 foreclosures, posting one of the top five foreclosure rates in the country.
"This plan isn't intended to be a bailout for residents – it's meant to help residents understand the process and give them the information and assistance they need to avoid losing their homes," Corriveau said. "Losing a home to foreclosure is one of the most devastating things that can happen to a family. This plan will help more families stay in their homes."