LANSING – State Representatives Roy Schmidt (D-Grand Rapids), Robert Dean (D-Grand Rapids) and Mary Valentine (D-Norton Shores) today threw their support behind a plan to keep more Michigan families in their homes by putting a 90-day moratorium on foreclosures for struggling homeowners who seek help.
"We often hear from victims of foreclosure that if they somehow had more time, they might have been able to work everything out," Schmidt said. "This plan will extend an important lifeline to those families who are working to find solutions. At a time when it's becoming increasingly harder for our residents to make their mortgage payments each month, this plan will help our working families hold on to their piece of the American Dream."
The House Democrats' 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).
"The foreclosure epidemic has affected our families, our neighborhoods and our local businesses inKent County - it has hurt," Dean said. "Vacant homes are lining our neighborhoods and once-booming businesses are now closed and the buildings, without tenats, appear deserted. This plan will not only keep residents in their homes, but it will keep our neighborhoods vibrant, optimistic and breathe new life into our struggling communities."
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.
A total of 612 properties were in foreclosure in January in Kent County, or one in every 397 housing units. Kent County consistently ranks in the top 10 counties statewide for foreclosures, according to RealtyTrac.
In Muskegon County, there were a total of 199 properties in foreclosure in January, or one in every 368 housing units.
"Foreclosures are devastating too many of our hard-working families and the loss to our community is enormous," Valentine said. "Vacant homes discourage new businesses from setting up shop and also put a damper on our tourism industry. This plan is a step in the right direction toward protecting our families, revitalizing our community and bolstering our economy."