May 15, 2009
May 16, 2009
Governor in her radio address says legislation will offer extra time, resources to helpMichigan families avoid foreclosure
LANSING - In her weekly radio address, Governor Jennifer M. Granholm today hailed a conference committee agreement between the Michigan Senate and House of Representatives on legislation that will freeze foreclosure proceedings for 90 days for homeowners who commit to work with their lender on modifying their mortgage loan.
The conference committee agreement "will give homeowners facing foreclosure some breathing room, some hope, to save their homes and preserve their American Dream," Granholm said. "I commend the efforts of State Rep. Andy Coulouris of Saginaw who helped forge the bipartisan legislative agreement. We are all committed to protecting Michigan families and helping them keep their homes."
During the 90 days that foreclosure proceedings are frozen, homeowners first would be required to seek assistance from a housing counselor in modifying the mortgage loan. The homeowner would then sit down with his or lender and work on a loan modification plan. If the homeowner and lender agree on the loan modification, foreclosure is avoided if the homeowner abides by the new agreement.
"Reducing foreclosures benefits more than just the people at risk of losing their homes," Granholm said. "Foreclosed homes blight our neighborhoods and drive down property values. They impact the entire community and our economy. It's in the best interests of everyone to reduce foreclosures."
The governor's weekly radio address is released each Friday morning and may be heard on broadcast stations across the state. The address is available on the governor's Web site at (www.michigan.gov/gov) for download, together with a clip of the quote above. The radio address is also available as a podcast on the Web site, as well as on iTunes and via RSS feed for general distribution to personal MP3 players and home computers. Links to the audio files and text of today's address follow.
Governor Jennifer M. Granholm
Radio Address - Foreclosure Legislation
Full: http://www.michigan.gov/documents/gov/Gov197Full_278656_7.mp3
Edited: http://www.michigan.gov/documents/gov/Gov197Edit_278657_7.mp3
Quote: http://www.michigan.gov/documents/gov/Gov197Quote_278659_7.mp3
Hello, this is Governor Jennifer Granholm.
Like dark storm clouds swirling on a spring day, foreclosures threaten the dreams of thousands of Michigan homeowners. But this week a ray of sunshine poked its way through the clouds.
A conference committee agreement on legislation between the Michigan Senate and House of Representatives will give homeowners facing foreclosure some breathing room, some hope, to save their homes and preserve their American Dream.
The legislation freezes foreclosure proceedings for 90 days for homeowners who commit to work with their lender on modifying their mortgage loan. As a first step, the lender will be required to notify the homeowner in writing that the mortgage is in default and who to contact.
For help in modifying the mortgage loan, the homeowner must contact a housing counselor. Housing counselors will be available through a state agency, the Michigan State Housing Development Authority.
Pulling together the homeowner, lender and a housing counselor is crucial because fewer than 20 percent of people in default communicate with their lender or a counselor soon enough to mitigate the situation. This legislation creates a process in which lenders can engage homeowners and homeowners can sit down with lenders.
Lenders would develop a plan where the homeowner's monthly mortgage payment wouldn't exceed 38 percent of his or her income. This could be done by various means, such as lowering the interest rate or lengthening the life of the loan. If a homeowner and lender agree on the loan modification, foreclosure is avoided if the homeowner abides by the new agreement.
This legislation offers hope that we can reduce the number of foreclosures occurring in Michigan. In April, there were close to 11,000 foreclosure filings in Michigan, bringing the total for the year to almost 47,000.
Reducing foreclosures benefits more than just the people at risk of losing their homes. Foreclosed homes blight our neighborhoods and drive down property values. They impact the entire community and our economy. It's in the best interests of everyone to reduce foreclosures.
That's what this legislation holds the promise to do. I commend the efforts of State Rep. Andy Coulouris of Saginaw who helped forge bipartisan legislative agreement. We are all committed to protecting Michigan families and helping them keep their homes.
So in the midst of all the economic gloominess, there's some good news for homeowners who may face foreclosure in the future. They will be afforded extra time and assistance to help them keep their homes, and keep their American Dream alive for themselves and their families.
It's like sunshine on a cloudy day. Thank you for listening.
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