The Michigan House of Representatives on Wednesday passed a bill to give what they called a “90-day lifeline” to those whose homes are at risk of foreclosure. Under the new legislation, any homeowner who commits to working with their lender and with government counselors cannot be foreclosed upon for at least 90 days to allow all sides to make arrangements to avoid foreclosure.
 
In a press release from the House Democratic Caucus, Rep. Andy Coulouris (D-Saginaw), the main sponsor of the bill, said, “Most homeowners who face foreclosure never thought they’d find themselves in that position. This plan is not a bailout, it’s a lifeline for our hard-working homeowners who deserve a little extra time to work things out. Helping homeowners find a way to stay in their home is the right thing to do not only for them, but for taxpayers and our economy as well.”

The House Democrats note that foreclosures affect not only the homeowner, but the property values for other homeowners in the neighborhoods where they take place and cost taxpayers, lenders and businesses as well. Michigan is among the nation’s hardest hit states for foreclosures with more than 100,000 homes foreclosed on in each of the last two years and more than 11,000 in the first month of 2009.