A Statewide Tour Aimed at Soliciting Help from the Legislature to Fight
Foreclosures and Predatory Lending Practices in Michigan
DETROIT, Oct. 15 /PRNewswire-USNewswire/ -- In a state where home
foreclosures are ranked the fourth highest in the nation and in an effort
to combat predatory lending, the Rev. Jesse Jackson has teamed with the
Michigan State Housing Development Authority (MSHDA) and several state
agencies committed to "Saving Our Homes, Building Healthy Communities
(SOHBHC)." SOHBHC is part of the Save the Dream Campaign, which kicked off
Friday by Governor Jennifer M. Granholm. Call 517-373-8370 or visit the
MSHDA Web site http://www.michigan.gov/mshda and click on the "Save the Dream"
icon for further details and available resources.
MSHDA has proposed two assistance programs to assist Michigan residents
who are facing foreclosure: ARM Assist Refinance, which helps residents who
are in an adjustable rate mortgage obtain a fixed rate loan; and Rescue
Refinance Program, which assists residents who are delinquent and have no
mitigating options. Both programs have been endorsed by Gov. Granholm, who
has urged the Legislature to introduce and pass enabling legislation.
"Healthy communities begin with healthy households, and based on
Michigan's foreclosure rate far too many residents are losing their homes,"
said MSHDA Executive Director Michael R. DeVos. "Our goal is to provide
assistance for those facing foreclosure; prevent others from facing
foreclosure; and to protect Michigan residents from predatory lenders."
Through SOHBHC, Rev. Jackson and MSHDA will begin an aggressive 3-day
schedule of informational and educational summits throughout the state.
They will include a myriad of resources for residents, while asking
residents to urge their elected state leaders to move on the assistance
programs immediately.
"There is a national crisis as it relates to the number of foreclosures
across this country and Michigan is at the forefront largely due to lenders
who take advantage of those who are already struggling," said Rev. Jackson.
"We want to put the power back into the hands of the every day citizen who
is simply trying to hold on to his or her part of the American Dream."
The tour will start in Lansing on Tuesday, ending in Detroit on
Thursday after visiting Flint, Saginaw and Pontiac - all cities where
foreclosures and subprime lending practices are most prevalent in Michigan.
The tour includes a Legislative Engagement Rally which will take place on
the steps of the Capitol on Thursday at noon.
In Michigan, residents are losing their homes to foreclosure at a rate
that is twice the national average, according to RealtyTrac Inc, a
California- based foreclosure Web site. This year, more than 14,242
foreclosures were filed in Michigan, an 81 percent increase over last year.
These numbers include 2,768 default notices, 6,987 sale notices and 4,487
bank repossessions throughout the state, according to RealtyTrac.
While Detroit leads the nation in foreclosures, its suburbs are not
immune to this epidemic. Wayne County had the fifth highest
foreclosure-filing rate for metropolitan areas with 7,410.
"This problem knows no ethnic or jurisdictional boundary," said Detroit
Mayor Kwame M. Kilpatrick. "We are all in this together, and if an epidemic
is spreading throughout our state, it threatens us all."
The summits will include SOHBHC partners MSHDA, the Governor's Office
of Community and Faith-Based Initiatives, the Cities of Promise, the City
of Lansing, Michigan's Campaign to End Homelessness, and the Rainbow/PUSH
Coalition. Local officials, ecumenical and community leaders will join each
summit in their respective communities, each having seen foreclosures
spread like an epidemic. Together they will kick-off the first initiative
of the Save the Dream campaign announced by Governor Granholm last Friday.
SOHBHC will provide residents with resources such as:
-- Guidance on what to do when faced with foreclosure
-- Highly trained counselors that will work with individuals on
budgeting, credit repair, and foreclosure prevention
-- Educate residents about MSHDA refinance assistance programs
-- A toll-free phone number for residents to call when in need of
assistance
Predatory or subprime lending is the practice of nonconventional
lenders using unscrupulous means to attach high-interest loans to those who
can least afford to pay them. Once locked into the excessive interest
rates, the new homeowner soon falls short of the monthly payment, sending
their home into foreclosure.
In 2006, the foreclosure rates were higher among African Americans and
Latinos; however, Caucasians struggled with predatory lending practices as
well. Last year, more than 72 percent of home refinance loans issued to
African Americans in Metro Detroit were high-cost, high interest loans,
according to a September 2007 study commissioned by ACORN. More than 48
percent were issued to Latinos, and 36 percent to Caucasians. Similar
numbers were found for Flint, Lansing, Saginaw and Pontiac.
"In this tough economy, we need to assist hard-working Michigan
families who are falling victim to mortgage foreclosures," said Governor
Granholm. "These efforts will help protect families from losing their homes
and work to stabilize Michigan's housing market."
SEE TOUR SCHEDULE BELOW.
TOUR SCHEDULE
Tuesday, October 16
Flint - Antioch Missionary Baptist Church,
1083 East Stewart Street - Community Forum at 6:30 pm
Wednesday, October 17
Lansing - Sexton High School,
102 McPherson Ave. - School Assembly at 9 am
Saginaw - Greater Coleman Temple COGIC,
2405 Bay Street - Community Forum at noon
Lansing - Pattengill Middle School,
1017 Jerome St. - Town Hall Meeting/Summit at 6 pm
Thursday, October 18
Lansing - Capitol Steps - Legislative Engagement Rally at Noon
Pontiac - Welcome Missionary Baptist Church,
143 Oneida Rd. - Minister's Meeting at 3 pm
Detroit - Historic Little Rock Baptist Church,
9000 Woodward Ave. - Community Forum/Summit at 6 pm
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SOURCE MSHDA
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Related links:
http://www.michigan.gov/mshda
CONTACT:
Jamaine Dickens of Commerce Communications
Group, +1-313-673-2667; or Darci McConnell of McConnell
Communications, +1-313-686-8094
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