LANSING – State Representative Jeff Mayes (D-Bay City) today threw his 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.
"We need to stand with the working men and women who are seeing their dream of homeownership slip through their grasp," Mayes said. "Nobody wins when a home is foreclosed on. This plan will bring homeowners and lenders together in order to work out a solution."
The plan announced 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).
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, 11,418 foreclosures were reported in Michigan. Bay City alone saw 65 homes go into foreclosure in January.
"Foreclosure is devastating to both families and our community," Mayes said. "When vacant homes line a neighborhood, property values plummet and crime is sure to follow. With Michigan's economy struggling, our working families deserve time to find solutions. This plan does that."