LANSING – A month after enactment of a plan proposed by House Democrats that provides a 90-day lifeline to homeowners at risk of losing their homes, the number of foreclosures in the state has plunged 39 percent, even as foreclosures across the country continue to rise amid a still-sluggish economy.
"The numbers prove that our new program to protect homeowners is working," said State Representative Andy Coulouris (D-Saginaw), who sponsored the original plan. "By giving families this extra time to work out a solution with their lender and a housing counselor, we are helping people hold on to their piece of the American Dream in these tough economic times. Over and over again, what we've heard from homeowners is that they'd have been able to keep their homes, if they'd only had a bit more time to work things out. With our economy continuing to struggle, we need to make sure that our working families are getting the helping hand they need while they get back on their feet."
Michigan dropped from seventh to 19th in the nation in foreclosure filings from June to July, a 39 percent decline, according to RealtyTrac, an online real estate information site. The Irvine, Calif.-based company cited the House Democrats' plan as a key factor in the dramatic drop in Michigan's foreclosure rate. Overall, U.S. foreclosures rose 7 percent in July.
The new law, which took effect on July 5, creates a 90-day lifeline for homeowners in danger of losing their home if they commit to working with their lender and an accredited housing counselor to find a solution. Counselors are available at no cost from the Michigan State Housing Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
Homeowners can visit the House Democrats' Web site, www.housedems.com, to learn how to get help through the program.
"The foreclosure epidemic runs deeper than just a family losing their home," said State Representative Jennifer Haase (D-Richmond). "The drop in foreclosures a positive upturn for our community, state and economy. This 90-day lifeline truly is giving our residents the chance to keep the dream of homeownership alive."