LANSING – State Representatives Dian Slavens (D-Canton), Marc Corriveau (D-Northville) and Richard LeBlanc (D-Westland) 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.
"As Michigan's foreclosure crisis continues to deepen, our working families are fighting to hold on to their homes," Slavens said. "Too many of our residents are on the brink of foreclosure and just need the opportunity to work out a solution with their lender. This plan provides homeowners with a lifeline that will help them remain in their homes."
The plan, passed by the House today, 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).
"When a family is forced out of their home it is devastating for the entire community," Corriveau said. "Vacant houses invite criminals, neighborhoods become unsafe and property values decline, which drives away new residents as well as new businesses. By giving homeowners a 90-day respite from the foreclosure process, we can prevent that damage."
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 Wayne County, there were 3,361 foreclosures in January – one out of every 249 housing units, according to RealtyTrac.
"Giving hard-working residents who are fighting to keep their home a chance to meet with their lender is the right thing to do for them and our community," LeBlanc said. "There are things we can and must do to help stop the foreclosure crisis that continues to threaten our homeowners and our economy. I call on the Senate to take quick action on this plan."