LANSING – State Representative Terry Brown (D-Pigeon) today voted for a plan to help struggling homeowners and keep more Michigan families in their homes by offering a 90-day lifeline to residents at risk of foreclosure who seek help. The plan passed the House and now goes to the Senate.
"The foreclosure epidemic creates a vicious cycle that we have to break," Brown said. "It's incredibly hard for a family to recover from losing their home. Property values of other homes in the area decline, taking a toll on those homeowners. Empty houses drive away new residents and new job providers, putting the economy into more of a spiral. That's why helping hard-working folks find a way to keep their homes benefits everyone."
The plan will create a 90-day reprieve from foreclosure for homeowners who commit to working with their mortgage company 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. Oakland County had 1,401 foreclosures in January, which averages to 1 in every 374 households.
"In this rough economy, anyone can easily fall behind on their mortgage if they get laid off, lose their health insurance or have an illness in the family," Brown said. "This plan is meant to support hard-working people who play by the rules but still might lose their home through no fault of their own. They deserve a little time to work things out with their mortgage company and hang on to their piece of the American Dream."