LANSING – In a victory for struggling families throughout Michigan, a plan supported by State Representative Dan Scripps (D-Leland) will go into effect on Sunday, providing a 90-day lifeline for homeowners at risk of losing their home to foreclosure.
"This lifeline for struggling families is going to keep a lot of people in their homes," Scripps said. "This housing crisis has absolutely devastated communities throughout our state, and it's time that we stood up for those who have worked hard and played by the rules and still found themselves facing foreclosure through no fault of their own. This new law is going to have a real positive impact on the lives of people throughout Northwest Michigan."
The new law creates a 90-day lifeline for homeowners at risk of losing their home who commit to working with their lender and a housing counselor to find a solution. Counselors are available at no cost through the Michigan State Housing Development Authority (MSHDA) and the U.S. Department of Housing and Urban Development (HUD).
Homeowners can visit Scripps' Web site, house.mi.gov/dscripps, to learn how to get help through the program.
Michigan ranked sixth in the nation in foreclosures in the first quarter of 2009, according to RealtyTrac, 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.
"When homeowners lose their piece of the American Dream, it doesn't just affect families – it tears apart
neighborhoods, drives away businesses and hurts our community," Scripps said. "Giving people the time they need to find
a way to stay in their homes is the right thing to do for our families, and the right thing to do for Michigan."