LANSING – State Representative Mike Simpson (D-Jackson) today voted for a plan to aid struggling homeowners and help keep more Michigan families in their homes by offering a 90-day lifeline to residents at risk of foreclosure who seek help. The plan passed the House and is now headed for the Senate.
"There's no question we're facing very difficult times, and people across mid-Michigan are struggling," Simpson said. "I am committed to facing this challenge head-on. By passing this plan, we can keep the dream of homeownership alive for our hard-working families and keep our communities strong and vibrant."
The plan passed today will create a 90-day reprieve from foreclosure for homeowners 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).
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.
"Foreclosures have a ripple effect that hurts our communities, driving away businesses and lowering property values," Simpson said. "That's why this plan is a win-win for families and our community. By giving homeowners the time they need to sit down and work out a solution with their lender, we can stop the foreclosure crisis and get our state back on the road to economic recovery."