Friday

April 4, 2008

Mark Schauer, Senate Democratic Leader
Mark Schauer is the Senate Democratic Leader.  He represents the 19th Senate District, which includes all of Calhoun County and most of Jackson County.

Preventing Foreclosures, Creating Vibrant Cities Key to Long-Term Economic Success

We’ve all felt the effects of the foreclosure crisis that is plaguing Michigan and the nation.  A report by California-based RealtyTrac Inc. indicates that Michigan has one of the highest foreclosure rates in the country.  Last year nearly 2 percent of all homes in Michigan were in foreclosure with more than 136,000 filings, the third highest rate in the country.

We need vibrant, energized communities in Michigan in order to attract and retain talented workers, and continue the important work of transforming our economy.  Unfortunately, our best efforts to support community economic development will be fruitless without tangible solutions to the foreclosure crisis.

Think about it.  Families who live in cities or towns that have been hit especially hard by mortgage foreclosures will have an even tougher time selling their homes as local property values decline.  For communities whose budgets have already been stretched thin in these tough economic times, foreclosures and falling home values mean less tax revenue to provide crucial public services.  This in turn may convince businesses who may be thinking of investing in a particular area to locate in another state, where their workers can expect to live in a thriving community for years to come.

This crisis affects real people of all social and economic backgrounds.  Everyone from lenders to community service groups agree that the key to avoiding foreclosure is to act early and communicate with your mortgage provider.  Unfortunately, a big part of the problem is that homeowners are often embarrassed or afraid to seek help, which only makes their situation worse.  That’s why education on this critical issue is so important.

We need a comprehensive, coordinated approach that focuses on:

• Making sure consumers are informed – In addition to PSAs and holding local forums, Democrats are sponsoring bills to make sure consumers have easy-to-understand details available to them at the time of closing and before.

• Providing emergency assistance – We must make tools available to those in dire need, such as refinancing assistance, and keep veterans and workers who have had their jobs outsourced from being foreclosed upon.

• Protecting against this happening in the future – Cracking down on predatory lending and deceptive marketing practices will save many consumers from experiencing this dilemma.

The Legislature has already passed several bills implementing some of these measures, but there is still more work to be done.

I recently had a chance to meet with local residents who are facing foreclosure at a pair of town hall meetings I hosted on the subject in Jackson and Battle Creek.  I came away more convinced than ever that we need to act quickly to shore up the state’s housing market and keep consumers in their homes.  Solving this crisis is an important step towards a renewed economy for Michigan, and I plan to keep fighting for common sense solutions that move our state forward.

Check back on Monday to hear from Steven Chester, Director for the Department of Environmental Quality.