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Rep. LeBlanc's Radio Report

Hi everyone, I'm State Representative Richard LeBlanc and I wish to thank you for visiting my webpage.  One of the things that we are talking about today within the House of Representatives and throughout our state is the foreclosure crisis. 

So many of our residents who've worked hard, they've saved up a lot of money, they eventually achieve that dream of buying a house where they can both live and raise families and enjoy their communities.  During the past year, however, thousands of residents, including many people within Westland, have lost their homes to the foreclosure process.  And this, as we all know, can be devastating to a family.  Foreclosures also hurt our communities by leaving homes vacant and they drive down the property values.

That's why the House passed legislation, recently, to protect our residents from this epidemic of foreclosures that is, frankly, sweeping across our entire state.  This legislation will, amongst other things, protect consumers from being steered toward high-cost loans when they otherwise would qualify for traditional loans.  It's going to also prohibit prepayment penalties and will also give legal recourse to those homeowners that have been victimized by predatory lenders.  And, frankly, we may all know some people that have fallen into that trap.

Now, what should you do if you are at risk of losing your home? The best advice you going to hear from both experts and laypersons alike, when you know that you are having financial difficulty, you have to communicate that.  You need to say it, say it often, say it to the right people but you have to communicate that message so that you can receive the help that you could be entitled to. 

·        You have to open and respond to the notices that you might receive in the mail.  Just throwing them away is not going to help the problem.

·        You should contact your mortgage holder immediately and ask them for help.  We all know that the mortgage contractors don't necessarily want your house, they want your money and so anything that we can do to avoid having that house go back to them is beneficial to everyone.

·        Know what kind of gap you need to manage by making a list of your monthly spending and comparing it to your monthly income.

·        You can also reduce your spending by eliminating a monthly payment like a cell phone, maybe cable television or for some people it might even be practical to get rid of that second car or third car.

·        Don't sign anything over unless you have a reputable homeownership counselor review it.  You need to make sure that you have assistance from professionals.

·        Contact a certified counseling agency. You can find a list of agencies and other useful resources at the Michigan State Housing Development Authority's website located at michigan.gov/M-S-H-D-A. 

The Michigan State Housing Development Authority or, MSHDA, also operates the "Save the Dream" program.  This program allows borrowers who meet income and credit score requirements to avoid dramatic increases in their housing expenses by securing a fixed-rate loan. It's interesting to point out, too, that these loans are accomplished without the use of taxpayer dollars.  The program also allows homeowners who have missed payments on their adjustable-rate mortgages and are unable to work out an agreement with their lender to apply for a fixed-rated loan. 

To learn more about all of this, please call MSHDA toll-free at 1-866-7432 or visit, as I mentioned before, michigan.gov/M-S-H-D-A. 

Michigan's foreclosure epidemic affects entire communities – not just the homeowners that are at risk of losing their homes. Foreclosures drive down property values and empty homes can invite trouble to all of our neighborhoods. Every time we can prevent a foreclosure notice from being issued, we are helping to build a stronger neighborhood and a stronger Michigan.

This is State Representative Richard LeBlanc and as I mentioned before, please feel to contact me about this issue that involves Westland or your neighborhoods.  You can call me toll free at 1-888-737-5325.  Or, e-mail me at richardleblanc@house.mi.gov.  I am here to serve you.  As always, it is a pleasure. 

See you again soon, thank you for listening.