LANSING – Genesee County's Democratic State Representatives 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 in trying to avoid foreclosure.
"With our economy in crisis, we need to stand behind our working families who are in danger of losing their piece of the American dream," said State Representative Lee Gonzales (D-Flint Twp.). "It's getting tougher to make that mortgage payment each month, and this plan gives families the time they need in order to avoid foreclosure."
The plan unveiled today 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).
"This plan provides the opportunity for Genesee County residents to save their homes," said State Representative Richard E. Hammel (D-Mt. Morris Township). "It gives them the chance to sit down face-to-face with their lenders and work out an alternative to losing their home to foreclosure."
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.
"Flint has suffered tremendously because of the housing crisis, and we're not going to turn things around with vacant homes dotting every neighborhood," said State Representative Woodrow Stanley (D-Flint). "Foreclosure has a ripple effect that lowers property values, drives away businesses and hurts our economy. The foreclosure crisis is at the root of our economic problems, and we need to address it now."
Last month, 629 properties went into foreclosure in Genesee County. Of these, 264 were in Flint, 62 were in Grand
Blanc, and Burton saw 59 homes enter foreclosure.
"Foreclosure doesn't just affect individual families, it affects whole neighborhoods and communities," said State
Representative Jim Slezak (D-Davison). "This plan
is a vital step toward keeping more of our working families in their homes."