LANSING – State Representatives Gino H. Polidori (D-Dearborn) and Doug Geiss (D-Taylor) today threw their support behind a House Democrats' plan to keep more Michigan families in their homes by putting a 90-day moratorium on foreclosures for struggling homeowners who seek help.
"As a state and a community, we are facing extraordinarily tough times right now, which means we need extra protections in place to help stop the foreclosure epidemic," Polidori said. "Encouraging homeowners and lenders to work together to find a solution other than foreclosure is the best thing we can to do protect our working families. By giving people just a little more time, we can help countless families hold on to the American Dream."
The House Democrats' plan unveiled today provides 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 and 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. In Wayne County, there were 3,361 foreclosures in January – one out of every 249 housing units, according to RealtyTrac.
"It's discouraging to drive through our neighborhoods and see so many homes standing vacant – many of them lost to foreclosure," Geiss said. "Home foreclosures hurt entire communities, not just the families that lose their homes. Foreclosures drive down property values and invite crime in abandoned homes. This plan will fight back against foreclosures and protect our communities as we work to get our economy back on the right track."