LANSING – Genesee County's Democratic Representatives 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 now moves to the Senate.
"Families across Genesee County are struggling with these tough economic times. That's why it is crucial that we stand by them and prevent them from losing their piece of the American Dream," said State Representative Lee Gonzales (D-Flint Township). "In this economy, it's very easy to fall behind on paying your mortgage if you've been laid off or you've lost your health insurance. This 90-day lifeline will give homeowners what they need most in order to get back on their feet – time."
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).
"The simple fact is that all across Michigan, hard-working families are in danger of losing their homes through no fault of their own," said State Representative Jim Slezak (D-Davison). "That's why we're not going to give a bailout to those individuals whose eyes were bigger than their wallets and tried to take advantage of the booming housing market. This plan will help those who have worked hard and played by the rules, but have fallen on hard times."
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, 629 of which were in Genesee County. Flint saw 264 properties enter foreclosure in January 2008, by far the most in the county.