LANSING – Governor Jennifer M. Granholm today signed into law a plan originally proposed by House Democrats that extends a 90-day lifeline to residents at risk of foreclosure who seek help.
"Once we had a bipartisan agreement, we moved as quickly as possible to get this plan signed – and not a moment too soon," said State Representative Andy Coulouris (D-Saginaw), the lead sponsor of the plan. "Too many residents already have seen their dream of homeownership disappear in this economy. Today, we're standing up for Michigan's working families to help them get through these tough times. I applaud the bipartisan commitment that led to this agreement and I hope we can continue this effort as we work to move Michigan forward."
After Coulouris spearheaded weeks of negotiations between the House and Senate, an agreement was reached that the House approved last week and the Senate passed on Tuesday. The plan will create a 90-day lifeline for homeowners at risk of losing their home who commit to working with their lender and a housing counselor to reach a solution. Counselors are available through the Michigan State Housing Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
"Many homeowners now find themselves in a position where they owe more on their mortgage than their home is worth," said State Representative Bert Johnson (D-Detroit), a sponsor of the plan. "This new law affords them the opportunity to sit down with their lender and modify their loan, while providing a housing counselor to help safeguard the borrower from the unscrupulous lending practices of the past."
According to RealtyTrac, Michigan ranked sixth in the nation in foreclosures in the first quarter of 2009, with more than 33,000 properties in foreclosure. In 2008, more than 145,000 Michigan properties statewide were in foreclosure – a 21 percent increase from 2007 and a 108 percent increase from 2006.
"Foreclosures have torn apart the fabric of our communities and hurt our urban areas tremendously," said State Representative Shanelle Jackson (D-Detroit), also a plan sponsor. "Our economic recovery depends on keeping our families in their homes. This is great news for Detroit and all of Michigan."