LANSING – State Representative Gary McDowell (D-Rudyard) voted to aid struggling homeowners and help keep more Michigan families in their homes by offering a 90-day lifeline to residents at risk of foreclosure who seek help. The plan passed the House and was sent to the Senate.
"Foreclosures don't just hurt the families who are losing their homes," McDowell said. "Every part of a community feels the repercussions when a home sits empty in a neighborhood. This plan will give our hardworking residents who have fallen on hard economic times a chance to keep their homes by giving them a lifeline."
The plan will create 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 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.
"This is undoubtedly a tough economic time for everyone in Michigan," McDowell said. "Our residents have so many things to worry about right now and losing their homes shouldn't be one of those concerns. This plan brings homeowners, lenders and counselors together to work out a way to keep families in their homes."