LANSING – In a move that will aid struggling homeowners trying to hold on to their piece of the American Dream, State Representative Richard E. Hammel (D-Mt. Morris Township) today voted for a compromise plan reached with Senate leaders that will extend a 90-day lifeline to residents at risk of foreclosure who seek help. The plan, originally passed by the House in March, awaits action in the Senate.
"Too many families across Genesee County have been hurt in this economy and we must stand up for them when times are tough," Hammel said. "This plan will give homeowners the time they need to work with their lender and a housing counselor in order to come to a solution. Foreclosures hurt everybody and this plan is a needed step toward keeping more Michigan families in their homes."
After weeks of negotiations between the House and Senate, the two chambers came to an agreement that will allow the plan to be sent to the Governor. The plan will create a 90-day lifeline for homeowners at risk of losing their home 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 in foreclosure. In 2008, more than 145,000 Michigan properties statewide were in foreclosure – a 21 percent increase from 2007 and a 108 percent increase from 2006. April alone saw 754 properties with foreclosure filings in Genesee County.
"The effect foreclosures have is not only devastating to the family that is forced to leave their home, it's also damaging to the neighborhood that must endure another empty house on their block," Hammel said. "This ripple effect lowers property values and drives businesses away, which hinders Michigan's economic recovery. Simply put, we need to fix this housing crisis if we're going to turn this economy around. This bipartisan agreement is a key step toward getting Michigan's economy going again."