LANSING – Oakland County State Representatives today 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.
"People are losing their homes in every neighborhood, from bungalows to lakefront mansions," said State Representative Lisa Brown (D-West Bloomfield). "Foreclosures don't just hurt the family that loses their home; they affect the entire community. Keeping more working families in their homes helps those families and also protects property values in our neighborhoods."
The plan proposed 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).
"Foreclosures hurt our families, our communities and our economy," said State Representative Vicki Barnett (D-Farmington Hills). "Businesses don't want to settle in communities that have declining property values and neighborhoods lined with vacant houses. In order to turn Michigan's economy around, we have to take decisive action to solve our housing crisis."
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.
"Residents around the state are hurting in this harsh economic climate," said State Representative Tim Melton (D-Pontiac). "This plan will help keep more of our families in their homes while they weather this tough economic storm."
In Oakland County, there were 1,401 foreclosures in January – one out of every 374 housing units, according to RealtyTrac.
"Foreclosures hurt our families and communities," said State Representative Ellen Cogen Lipton (D-Huntington Woods). "Foreclosed homes bring down the property values of whole communities. By making the foundations of our neighborhoods stronger, we will attract businesses to provide jobs for our workers and make sure a crisis like this never happens again."
State Representative Vincent Gregory (D-Southfield) also praised the plan.
"My top priority in the Legislature is to protect our residents and this plan does just that," Gregory said. "Owning a home is not only a part of the American Dream, but it is critical element in raising a family. Our families deserve a chance at avoiding foreclosure and I will fight to ensure they have that chance."