LANSING – In a move that will aid struggling homeowners trying to hold on to their piece of the American Dream, State Representatives Joan Bauer (D-Lansing) and Mark Meadows (D-East Lansing) voted in favor of 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 House Democrats in February, now moves to the Senate for quick approval.
"The economic crisis that has hit Michigan the hardest is being felt mostly in our neighborhoods and families," Bauer said. "To keep our communities intact, we need to give our financially troubled homeowners the option to work with their lender and keep their home. This plan gives our families the tools they need to keep their homes."
After weeks of negotiations between the House and Senate, the two chambers came to an agreement that will allow the House Democrats' plan to be sent to the Governor. The plan will create a 90-day lifeline for homeowners at risk of losing their home 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.
"I couldn't be happier that we finally passed this piece of legislation," Meadows said. "Michigan workers are some of the hardest working people on the planet, and they deserve to have a government that stands by them in the toughest of times. I look forward to seeing more of these kinds of bicameral efforts in the Legislature as we work to make Michigan a better place to live, work and raise a family."