LANSING – In a move that will aid struggling homeowners, State Representatives Dian Slavens (D-Canton) and Marc Corriveau (D-Northville) today voted for a compromise plan reached with Senate leaders that will extend a 90-day lifeline to residents at risk of foreclosure who seek help. The plan, originally proposed by the House in February, now moves to the Senate for quick approval.
"As our economic crisis continues to deepen, Michigan's hard-working families are fighting each and every day to hold on to their homes," Slavens said. "Too many of our residents are on the brink of foreclosure and just need the opportunity and time to work out a solution with their lender. This plan provides homeowners with a lifeline that will help them keep their piece of the American Dream."
After weeks of negotiations between the House and Senate, the two chambers came to an agreement that will allow the House plan to be sent to the Governor. The plan will create a 90-day lifeline 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).
According to RealtyTrac, Michigan ranked sixth in the nation in foreclosures in the first quarter of 2009, 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. In Wayne County, more than 12,600 foreclosures were recorded in the first four months of 2009.
"Foreclosures aren't just hurting Michigan families – they're having a devastating effect on our neighborhoods, communities and businesses," Corriveau said. "We must do everything we can to prevent more homeowners from falling into foreclosure. I applaud my colleagues in the Legislature for coming together to pass this plan that gives our residents who are at risk of losing their homes some much-needed breathing room."