LANSING – In a move that will aid struggling homeowners trying to hold on to their piece of the American Dream, State Representatives Mike "Huck" Huckleberry (D-Greenville) and Roy Schmidt (D-Grand Rapids) today voted to pass a compromise plan reached with Senate leaders that will extend a 90-day lifeline to residents at risk of foreclosure who seek help. The plan, which was originally introduced in the House, now moves to the Senate for quick approval.
"It's heartbreaking to see so many of our hard-working families in Montcalm and Ionia counties watch their homes slip away," Huckleberry said. "These are people who have worked hard all their lives and scraped up enough savings to be able to put a roof over their family's head. Especially as we endure this painful recession, this important lifeline will provide our working families with the time they need to hang on to their homes."
After weeks of negotiations between the House and Senate, the two chambers came to an agreement that will allow the plan to be sent to the Governor. 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. Counselors are available through the Michigan State Housing Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
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 Kent County, which consistently ranks in the top 10 counties statewide for foreclosures, a total of 3,067 properties were in foreclosure from January to April 2009, according to RealtyTrac. Montcalm County had 285 properties in foreclosure through the first four months of 2009, while Ionia County had 188 properties in foreclosure in that same period.
"None of us are immune from the threat of foreclosure," Schmidt said. "Whether it results from the loss of a job, or a catastrophic illness, this can happen to any family at any time. It's imperative that we pass this plan to immediately help families at risk of foreclosure. I applaud my colleagues for coming together to find a solution for Michigan residents, and hope the Senate joins us in passing this plan swiftly."