LANSING – State Representative Jeff Mayes (D-Bay City) joined the Michigan House today and passed a plan to establish the Taxpayer Home Protection Act, which will help homeowners at risk of losing their homes to tax foreclosure get extensions and exemptions on their property taxes.
"Residents all across our state are facing tough economic times," Mayes said. "The cost of everything from a gallon of milk to a gallon of gas continues to rise and many families are struggling just to make ends meet. Many of these same families are losing their home to foreclosures and we must do everything we can to lend them a helping hand."
The bipartisan Taxpayer Home Protection Act aims to streamline the process of struggling homeowners applying for an exemption to the property tax, as well as adds additional notification requirements so homeowners know exactly when their property could be foreclosed on and what forms of assistance are available to them. The plan also will exclude water and utility bills from items that can trigger foreclosure; and give homeowners more flexibility in repaying delinquent taxes before foreclosure.
According to RealtyTrac, Michigan reported 136,000 foreclosure filings in 2007 – a 68 percent increase from 2006 and 282 percent increase from 2005. Since the beginning of 2008, Michigan has reported a total of 62,138 foreclosures, posting one of the top five foreclosure rates in the country.
"This plan is not meant to bail out residents who simply don't pay their property taxes," Mayes said. "It is meant to be much-needed relief to residents who can hardly afford to put food on the table and will help them better understand the property tax process and their available options. This plan will help keep more residents in their home as we work to get our state back on track."