LANSING – A month after enactment of a plan that provides a 90-day lifeline to homeowners at risk of losing their homes, State Representative Bert Johnson (D-Detroit) hailed the news that Wayne County had seen its foreclosure rate drop 36 percent in the last month, even as foreclosures across the country continue to rise amid a still-sluggish economy.
"We passed this legislation in order to slow the rate of foreclosures so homeowners would get the opportunity to restructure their mortgages to something more affordable," said Johnson, who sponsored the original plan. "I am thrilled to say it has succeeded."
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 Johnson's plan as a key factor in the dramatic drop in Michigan's foreclosure rate. In Wayne County, the
number of foreclosures plunged by 36 percent. 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 Johnson's Web site, johnson.housedems.com, to learn how to get help through the program.
"Many people found themselves with mortgage payments that adjusted to astronomical levels, which was especially troubling during our current recession," Johnson said. "I'm proud to have worked to pass this legislation on behalf of the people struggling through this time."