LANSING – A month after enactment of a plan supported by State Representative Lisa Brown (D-West Bloomfield) that provides a 90-day lifeline to homeowners at risk of losing their homes, the number of foreclosures in Oakland County has dropped 35 percent and the number of foreclosures statewide has plunged 39 percent, even as foreclosures across the country continue to rise amid a still-sluggish economy.
"These numbers show that our 90-day foreclosure lifeline really is helping struggling homeowners," Brown said. "In these tough economic times, anyone of us, no matter the size or cost of our home, could have trouble making our mortgage payments and could face foreclosure. This successful program is giving thousands of homeowners the time they need to work out a solution with their lender and hold on to the home they've worked so hard for."
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 plan as a key factor in the dramatic drop in Michigan's foreclosure rate. Locally, the number of foreclosures plunged 35 percent in Oakland County. 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).
To learn how to get help through the program, homeowners can visit Brown's Web site, house.mi.gov/lbrown.
"Foreclosures don't just hurt individual families, they also have a devastating impact on our neighborhoods, community and economy," Brown said. "This 90-day lifeline is a viable option for homeowners who have fallen on hard times. I encourage all struggling homeowners to take advantage of this program and the extra time it provides to help them hold onto their piece of the American Dream."