LANSING – In a move that will aid homeowners struggling to hold on to their homes, House Majority Floor Leader Kathy Angerer (D-Dundee) today passed a compromise plan that extends a 90-day lifeline to residents facing foreclosure who seek help. The plan, originally proposed by House Democrats in February, now moves to the Senate for quick approval.
"When a home in our community goes into foreclosure, we all suffer," Angerer said. "For too long, our residents have been losing their homes, our property values have continued to shrink, and our small businesses have been disappearing. This plan will keep families in their homes, strengthen our neighborhoods, and begin to revitalize our economy."
After weeks of negotiations between the House and Senate, the two chambers came to an agreement that send the House Democrats' plan to the Governor. The plan creates a 90-day barrier against 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 entering into foreclosure. This is 12 percent increase over the first quarter of 2008, and up astronomically from 2005, when Michigan only had 35,635 foreclosures for the entire year.
"This is a great example of how our residents can benefit when lawmakers put aside their differences and work together," Angerer said. "I applaud my colleagues for passing this plan that will help more homeowners hang on to their piece of the American Dream."