LANSING – State Representatives Joan Bauer (D-Lansing), Barb Byrum (D-Onondaga) and Mark Meadows (D-East Lansing) 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.
"Home foreclosures negatively affect the whole community, not just certain segments," Byrum said. "We have to put an end to this epidemic, and this plan does just that. By giving our homeowners facing foreclosure more options, we can help them avoid being swept up in this national epidemic."
The plan provides a 90-day reprieve from foreclosure for homeowners who commit to working with their lender and a housing counselor to reach a solution. Counselors are available through the Michigan State Housing and Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
"Michigan's unemployment rate leads the nation and over 160,000 Michigan citizens have lost their jobs in the last six months," Meadows said. "When people aren't working, they can't pay their mortgages without sacrificing other essentials, like feeding their families. A new wave of foreclosures is on the horizon. This plan will lessen the burden on our families by giving them more options and most importantly, more time."
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 Ingham County there were 404 home foreclosures in January – 1 in every 299 units, according to RealtyTrac.
"Owning a home is crucial part of the American Dream," Bauer said. "Foreclosures are ruining this dream for families across mid-Michigan and this plan is meant to keep the dream alive. It is important that the Legislature quickly passes this plan to keep our families in their homes where they belong."