LANSING – State Representatives Kate Ebli (D-Monroe) and Kathy Angerer (D-Dundee) today announced that the House passed an aggressive plan to fight the epidemic of foreclosures by establishing programs to allow homeowners saddled with risky adjustable-rate mortgages (ARMs), and those who have missed mortgage payments, to refinance and secure a fixed-rate loan. The plan, which will allow more Michigan residents to avoid losing their homes, is part of the comprehensive approach advocated by Ebli and Angerer to help jumpstart the state's economy.
"The epidemic of foreclosures hurts entire neighborhoods because when homes are left abandoned, property values go down," Ebli said. "We are continuing to work hard to protect Michigan's hard-working men and women from losing their piece of the American Dream. Our plan strengthens communities, and by doing that, we will attract businesses and jobs to our state."
The plan allows at-risk low- and moderate-income borrowers – homeowners facing a spike in housing expenses due to their adjustable-rate mortgage, or residents who have already missed payments due to financial constraints – to secure a fixed-rated loan through the Michigan State Housing Development Authority (MSHDA). The agency provides loans financed through the sale of tax-exempt and taxable bonds and notes to private investors – not from state tax revenues.
Michigan ranks fourth in the nation in foreclosures, according to the latest figures from RealtyTrac, an Irvine, Calif.-based online foreclosure firm.
"No one should have to go through the devastating experience of being forced out of their home," Angerer said. "The foreclosure epidemic seen around the nation has hit Michigan especially hard, and the plan passed by the House today puts Michigan at the forefront of states' efforts to keep more families in their homes. Every time we work together to prevent a foreclosure notice from being issued, we are strengthening our neighborhoods."