LANSING – State Representative Terry Brown (D-Pigeon) today threw his 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.
"Foreclosures don't just hurt the families that lose their homes – they also hurt property values, and they drive away new businesses that would create jobs in our communities," Brown said. "Working families are hurting, and we can't turn our backs on them when they are trying to find a way to hang on to their homes. They deserve a chance to work out a solution to avoid foreclosure, and this plan provides that."
The plan proposed 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).
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.
"We have to act now to stop the foreclosure epidemic," Brown said. "Foreclosures are a major factor in Michigan's economic downturn, and until we solve this problem, we're going to remain stuck. This plan will keep more working families in their home and help get our economy moving again."