LANSING – Seven lawmakers who represent Detroit today praised a plan to keep more struggling families in their homes by creating a 90-day foreclosure moratorium for homeowners who seek help.
"A home is the foundation that many Michigan residents use to build their lives and expand their families," said State Representative Timothy Bledsoe (D-Grosse Pointe). "In order to make Michigan a state where its residents and businesses can thrive, it is imperative that we support and defend our homeowners. This plan does just that."
The plan provides a 90-day reprieve from foreclosure for homeowners who commit to working with their lender and a housing counselor to reach a solution. Counselors are available through the Michigan State Housing and Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
"For too long, foreclosure has decimated our families, our neighborhoods and our communities," said State Representative Gabe Leland (D-Detroit). "People who are trying to make their mortgage payment every month deserve an opportunity to sit down with a housing counselor and their lender to find a solution."
State Representative Fred Durhal Jr. (D-Detroit) also praised the plan, saying: "Too many Detroit families are losing their homes simply because they aren't given enough time to talk to their lenders and fix the problem. We can't afford to let this happen anymore."
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. "Every day my office receives calls from families losing their homes," said State Representative Rashida Tlaib (D-Detroit). "This plan will give homeowners the time that they need to hang on to their piece of the American Dream."
State Representative Jimmy Womack (D-Detroit) said: "Everyone loses when homes go into foreclosure. Approval of this plan would be a win-win for homeowners and lenders, as well as for our community."
In 2008, Wayne County ranked first in the state with 55,634 properties in foreclosure. Just last month, 3,361 Wayne County homes went into foreclosure – one out of every 249.
"Foreclosure doesn't just affect one family who is losing their home – it affects all of Detroit," said State Representative Shanelle Jackson (D-Detroit). "Keeping more of our families in their homes will help us build stronger communities, protect our children from the dangers of vacant and blighted homes, and preserve our sense of pride in our city."
State Representative David Nathan (D-Detroit) added: "People who have worked hard their whole lives deserve the opportunity to make payment arrangements or figure out their options to avoid foreclosure. This plan gives our residents the chance to hold on to their homes, which is good for them and good for our city."