LANSING – In a move that will aid struggling homeowners trying to hold on to their piece of the American Dream, Detroit lawmakers voted in favor of a compromise plan reached with Senate leaders that will extend a 90-day lifeline to residents at risk of foreclosure who seek help. The plan, originally proposed by House Democrats in February, awaits action in the Senate.
"My top priority is keeping hard-working families in their homes. That's what will make Detroit and Michigan strong," said State Representative Bert Johnson (D-Detroit), a sponsor of the plan. "Those homeowners willing to reach out for assistance and sit down with a lender should have the opportunity to save their homes. No one wins in these foreclosure battles and it makes no sense for people to lose their homes when all they needed was a little more time."
After weeks of negotiations between the House and Senate, the two chambers came to an agreement that will allow the House Democrats' plan to be sent to the Governor. The plan will create a 90-day lifeline for homeowners at risk of losing their home 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).
"I'm glad we could come to a bipartisan solution on this plan," said State Representative Fred Durhal Jr. (D-Detroit). "Too many of our residents are facing foreclosure through no fault of their own and need this time to keep a roof over their heads. Keeping people in their homes will strengthen our communities and help push Michigan's economy forward."
According to RealtyTrac, Michigan ranked sixth in the nation in foreclosures in the first quarter of 2009, with more than 33,000 properties in foreclosure. In 2008, more than 145,000 Michigan properties statewide were in foreclosure – a 21 percent increase from 2007 and a 108 percent increase from 2006. Wayne County had 12,625 foreclosures in the first four months of 2009.
"The plan to address the crisis of foreclosure is an important first step," said State Representative Bettie C. Scott (D-Detroit). "It demonstrates our state's recognition of the problem of foreclosure and its willingness to begin to address the issues facing far too many families in Michigan."