LANSING – Oakland County Representatives today voted for a plan to aid struggling homeowners and help keep more Michigan families in their homes by offering a 90-day lifeline to residents at risk of foreclosure who seek help.
"When a family loses their home to foreclosure, it affects our entire community," said State Representative Vicki Barnett (D-Farmington Hills). "Vacant homes lower the property values of homes in the neighborhood and drive businesses away. Michigan's economic recovery depends on keeping our residents in their homes, which is why we must act now."
The plan will create 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 Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
"Nobody wins when a hard-working family loses their home," said State Representative Lisa Brown (D-West Bloomfield). "Foreclosures don't just hurt individuals – they affect entire neighborhoods, businesses and communities. Giving struggling homeowners more time to seek help and straighten things out with their lender will help more of our families hold on to their most precious investment."
"Michigan's foreclosure epidemic has impacted Oakland County," said State Representative Tim Melton (D-Pontiac). "Owning a home is central to the American Dream and due to the poor economic climate, the dream is being shattered for families across the state. The plan that we passed today will help keep that dream intact."
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 out to 1 in every 374 households.
"Giving folks the option to work with their lender to avoid foreclosure is long overdue," said State Representative Marie Donigan (D-Royal Oak). "Our residents need a Legislature that looks out for their best interests, and this plan does that. By working together, we will avert this foreclosure crisis and come out a better, stronger Michigan."
The plan passed by the House now heads to the State Senate.
"A lot of these homeowners are everyday people who fell behind on their bills because of lost jobs or for reasons beyond of their control," said State Representative Ellen Cogen Lipton (D-Huntington Woods). "By giving our residents some more time to catch up on their mortgage payments, or to at least work out a solution with their lenders, we can keep more residents in their homes and help avoid the disaster of foreclosure in our communities. I applaud my colleagues in the House for passing this plan and I call on the Senate to take swift action to get it to the Governor as quickly as possible."