LANSING – In a victory for struggling families throughout Michigan, a plan supported by State Representatives Dian Slavens (D-Canton) and Deb Kennedy (D-Brownstown) goes into effect Sunday, providing a 90-day lifeline for homeowners at risk of losing their home to foreclosure.
"In these tough economic times, thousands of Michigan's hard-working families are fighting tooth and nail just to hang on to their homes," Slavens said. "Many of our struggling homeowners are finding themselves on the verge of foreclosure and could avoid disaster if only they had the time to work out a solution with their lender. This new law will give our homeowners the breathing room they need to get back on their feet."
The new law creates a 90-day lifeline for homeowners at risk of losing their home who commit to working with their lender and a housing counselor to find a solution. Counselors are available at no cost through the Michigan State Housing Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
To learn how to get help through the program, residents can visit Slavens' Web site, house.mi.gov/dslavens, or call her office toll-free at (888) 347-8021. Residents also can visit Kennedy's Web site, house.mi.gov/dkennedy, or call her office toll-free at (866) 725-2929.
Michigan ranked sixth in the nation in foreclosures in the first quarter of 2009, according to RealtyTrac, 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.
"Foreclosures not only devastate families, they also tear at the fabric of our communities and businesses," Kennedy
said. "The fallout from the economic crisis has shown just how vulnerable we all are in this recession, and our
residents need our support now more than ever. This new law provides a lifeline to help Michigan's hard-working men
and women who have fallen on hard times keep their homes and it also will help get our economy back on track."