LANSING – In a move that will aid struggling homeowners, State Representatives Deb Kennedy (D-Brownstown) and Douglas Geiss (D-Taylor) today voted for 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 the House in February, now moves to the Senate for quick approval.
"The tragedy of foreclosure is putting our communities at risk," Kennedy said. "It is time we stand up for our residents and give them the tools they need to combat this epidemic. I applaud my colleagues in the Legislature for passing this common-sense plan and helping our families."
After weeks of negotiations between the House and Senate, the two chambers came to an agreement that will allow the House plan to be sent to the Governor. The plan will create a 90-day lifeline 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).
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. In Wayne County, more than 12,600 foreclosures were recorded in the first four months of 2009.
"Michigan residents deserve the time to work with a lender to stay in their homes," Geiss said. "By giving our residents the tools they need to keep their piece of the American Dream from slipping away, we will be a step closer to getting our economy back on track. I commend my colleagues in the House and Senate for passing this plan."