LANSING – Washtenaw County Democratic State Representatives Pam Byrnes (D-Lyndon Township), Alma Wheeler Smith (D-Salem) and Rebekah Warren (D-Ann Arbor) today praised a plan to give struggling homeowners a 90-day reprieve on foreclosure if they agree to sit down with their lenders and work out a solution.
"Foreclosures are at the heart of Michigan's economic crisis, and we have to act now to stop this epidemic," Byrnes said. "This plan gives struggling homeowners two things they desperately need: time to temporarily stop the foreclosure clock and the opportunity to sit down with their lender and a housing counselor so they can figure out a solution. This plan is an effective way to provide both those needs."
The plan that House Democrats announced today provides 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 and Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
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.
"Washtenaw County has been hit particularly hard by the housing crisis, with 1,439 homes foreclosed on in 2008," Smith said. "Our working families need support to get through these tough times. Letting them work out a way to keep their homes makes sense for them as well as for our state as a whole."
Warren pointed out that no one is immune from foreclosure.
"The numbers in Washtenaw County alone show the impact this crisis has had on Michigan families, touching many who never thought they'd find themselves in this situation," Warren said. "They've worked hard all their lives, and now, we as a state have a responsibility to work with them. This plan will protect struggling families, protect property values, and help make our communities more vibrant and attractive."