December 12, 2007
December 12, 2007
LANSING - Governor Jennifer M. Granholm, along with the governors of Ohio, Illinois, New Mexico, and Puerto Rico, today encouraged passage of federal legislation that would help struggling homeowners avoid foreclosure.
In a letter to the leaders of the House and Senate Judiciary Committees, including Congressman John Conyers (D - Detroit), the governors thanked the committees for their efforts to address the foreclosure crisis.
"Given the current housing crisis, allowing the same judicial flexibility for primary residences is a common-sense approach," the governors wrote. "This legislation can help up to 600,000 borrowers keep their homes and pay for them, which would benefit families and communities while stabilizing housing markets."
The governors urged passage of legislation that allows bankruptcy courts to modify certain mortgages on primary residences to help borrowers avoid foreclosure. Under current law, courts can already modify mortgages on vacation homes and family farms.
"I am encouraged to see Congress acting on legislation that will help keep families in their homes," said Governor Granholm. "Congressman Conyers' work in the House of Representatives is particularly important as we await passage of the ‘Save the Dream' legislation in the state Senate."
Last week the state House passed legislation that would allow qualified borrowers to refinance their homes into secure, fixed-rate loan products through the Michigan State Housing Finance Agency. The legislation is currently before the state Senate.
Following legislative approval, the "Save the Dream" initiative will help qualified borrowers refinance their homes into secure, fixed-rate loan products in order to avoid foreclosure. To qualify for one of the new loan products, homeowners could be required to meet the same income and sales price limits as other MSHDA loan products require. Household income must be under $72,250, and the purchase price of the home cannot exceed $216,750. The proposal will be funded by taxable bonds.
Granholm announced a toll-free hotline to assist homeowners needing information on how to address possible foreclosure. That number is: 866-946-7432.
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