LANSING – State Representative Andy Coulouris (D-Saginaw) today announced a plan that will keep more Michigan families in their homes by putting a 90-day moratorium on foreclosures for struggling homeowners who seek help.
"Losing a home is a devastating blow to any family, and the foreclosure epidemic is hurting entire communities," Coulouris said. "Vacant homes drive down property values, invite criminal behavior, and deter new businesses from setting up shop. By giving homeowners time to find alternatives to foreclosure, this plan will support our working families and make our communities and our economy stronger."
Coulouris' plan 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. Saginaw County saw a record 1,130 foreclosures in 2008. In January of this year alone, 11,418 foreclosures were reported in Michigan.
"All across Michigan, our working families are seeing their dream of homeownership disappear," Coulouris said. "People are trying to keep up with their mortgage payments, but with unemployment in the double-digits and our economy struggling, it's tough, and it's getting tougher. What this plan does is provide homeowners something they don't have right now – time. These 90 days are more than just a temporary reprieve – it can be a way out of foreclosure."