LANSING – Eight House Democrats who represent Detroit voted today to pass a plan that aids 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 now goes to the Senate.
"Michigan is experiencing the largest economic challenges we have seen in our lifetime and all of Detroit is hurting," said State Representative Shanelle Jackson (D-Detroit), a lead sponsor of the plan. "Now is the time when our residents need our support the most. This plan will help our struggling homeowners keep their heads above water, keep families in their homes and build a stronger Detroit."
The House Democrats' plan will create a 90-day reprieve from foreclosure for homeowners who commit to working with their lender and housing counselors available through the Michigan State Housing Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
"As Detroit Caucus Chair, I consider it my responsibility to bring all Detroit Representatives together to work on the issues that affect Detroiters the most, and foreclosure is definitely one of those issues," said State Representative Bert Johnson (D-Detroit). "Giving homeowners time to work out a solution with their mortgage companies helps everyone. Keeping more families in their homes makes our communities safer for residents and more attractive to companies that will create jobs."
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.
"Because of the current economic climate, our families are hurting," said State Representative Tim Bledsoe (D-Grosse Pointe). "The last thing anyone needs in these tough times is the news that they are close to losing their home because of a situation out of their control. This plan gives the residents of our communities the tools they need to help avoid the disaster of foreclosure."
State Representative Rashida Tlaib (D-Detroit) said: "I have heard from numerous residents facing foreclosure who never thought they'd be in this position. Foreclosure is a highly emotional and complicated process. Giving our residents more time to sit down with their lender and a housing counselor to find a solutions is what our families need, and it's what our cities need."
"Families who face foreclosure are forced to go through one of the most devastating and stressful experiences imaginable," said State Representative Coleman Young II (D-Detroit). "Vacant houses invite criminals to move in and make our neighborhoods unsafe for children and families. By connecting homeowners and their lenders, with the help of housing counselors, we can prevent that damage."
State Representative Fred Durhal Jr. (D-Detroit) noted that every foreclosure is another family who has suffered one of the most devastating losses imaginable.
"There were 1,548 foreclosures in Detroit just this past January," Durhal said. "That's 1,548 of our neighbors, friends, co-workers and family members. We need to support our working families during this crisis and this plan will help do that."
"There's no question that Detroit has been hit harder than any other area of the state by the foreclosure crisis," said State Representative Gabe Leland (D-Detroit). "This common-sense plan is the kind of real action that our residents have been demanding. I hope that we can move quickly on this plan and help homeowners hold on to their piece of the American Dream."
State Representative Bettie C. Scott (D-Detroit) called on the Senate to take quick action on the plan.
"I am pleased to see real action taking place to address the serious issue of foreclosures here in Detroit," Scott said. "This plan is a great first step, but I know there are more ways we can help our hard-working families who are facing foreclosure. I urge my colleagues in the Senate to approve this plan so we can focus on creating more solutions."