LANSING – State Representatives Dian Slavens (D-Canton), Deb Kennedy (D-Brownstown) and Marc Corriveau (D-Northville) today threw their support behind a plan to keep more Michigan families in their homes by putting a 90-day moratorium on foreclosures for struggling homeowners who seek help.
"With home foreclosures continuing at an alarming rate, we must take action to help more families stay in their homes," Slavens said. "Giving homeowners more time to work out a solution with their lender is the right thing to do as we all work together to weather this financial storm. This plan gives our residents who are at risk of losing their homes some breathing room."
The plan unveiled today provides 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 and Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
"Too many of our working families have seen their own piece of the American Dream slip away," Kennedy said. "Time and again, foreclosure victims have said that if they'd only had a little more time to work out a solution, they would have been able to hold on to their homes. By giving homeowners and lenders more time to work things out, we can help put a stop to this epidemic that is wreaking havoc on our neighborhoods and driving down our property values."
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 Wayne County, there were 3,361 foreclosures in January – one out of every 249 housing units, according to RealtyTrac.
"This plan is an invaluable tool that will help Michigan homeowners who are struggling to hang on to their homes in this tough economy," Corriveau said. "Foreclosures aren't just about the pain that individual families go through – they hurt whole neighborhoods, communities and business districts. We must do everything we can to prevent more homeowners from falling into foreclosure."