Efforts Ahoy To Stop Foreclosures And Keep Dreams Alive

October 16th, 2007

Granholm, the governor of Michigan, is being proactive to help foreclosure victims with options of refinancing. A programme is being launched by Michigan State Housing Development Authority or MSHDA. Already it has spread a public awareness campaign Save the Dream to educate the people about the foreclosure menace. Granholm strongly feels that these measures will put back the Michigan housing market on its rails.

Two fold steps are being initiated. The Adjustable Rate Mortgage Refinance Programme will help the house owners with ARM to negotiate the loan for a fixed loan with less interest. The Rescue Refinance Program will help those with delinquency and soon to be sent foreclosure notices.

As yet the schemes are awaiting legislative approval. The house owners must meet certain preconditions. The income and sales price limits has to be same as laid down for other MSHDA loan products. This means the income of the family must be less than $72,250 and the buying price of the house is not to be more than $216,750. These programmes will be supported financially by taxable bonds and the house owners will be responsible for the entire value of the refinanced mortgages. The rates of the programmes will be strictly kept below industry market rates.

According to statistics, foreclosures always dog the footsteps of those living within the poverty circle. For this very reason the public awareness is focusing on 20 cities across Michigan. The aim is not only to save the great American dream of everyone owning a piece of property but also to see to the safety and security of those with long-term traditional loans whose rates are fixed.

Michigan foreclosures have already doubled since the previous year – jumping from 42,000 to 83,000. Detroit is leading. Afro-American citizens have contracted 62% of the sub-prime loans and many are facing foreclosures.

State representative, Steve Tobocman, is strident in his bewailing the fact that the middle-income groups of Michigan are facing an uphill task trying to make ends meet during these difficult economic times. They are under the risk of losing their houses and see their dreams turn into the nightmare of evictions. He says that the Democrats are going all out to protect the consumers from the clutches of predatory lenders. Meanwhile refinancing avenues have to be found for those already saddled with ARM’s and about to face foreclosures.

Via