The plan allows at-risk low- and moderate-income borrowers – homeowners facing a spike in housing expenses due to their adjustable-rate mortgage, or residents who have already missed payments due to financial constraints – to secure a fixed-rated loan through the Michigan State Housing Development Authority (MSHDA). The agency provides loans financed through the sale of tax-exempt and taxable bonds and notes to private investors – not from state tax revenues.
Makes sense. The mortgage crisis is really putting the hurt on the state economy, and you know what it is doing nationally. The word "recession" keeps coming up. We can do something to help stop the bleeding in Michigan.
"Federal policies have utterly failed to prevent the meltdown of the subprime mortgage market," said State Representative Marc Corriveau (D-Northville). "This refinancing legislation puts Michigan at the forefront of states' efforts to protect hard-working men and women from losing their piece of the American Dream."
Governor Granholm applauds the House move and called on the Senate to act. From the MI News Wire-
“We have developed a great program and some great mortgage tools to help protect hard-working homeowners who are facing mortgage foreclosures,” Granholm said. “I applaud the House for passing bills that would put this program in place to protect Michigan families; now the Senate needs to take swift action as well.”
The Senate can act, or we can add it to the list of things they haven't done this year. Don't think they want that list to keep growing, do you? Especially on something like this.
Perhaps this time we will be a "priority" for the Senate.
If you need mortgage help now, check out MSHDA's "Save the Dream" link for a hotline number that will connect you to a housing counselor, along with other helpful links that deal with foreclosure.