LANSING – House Democrats today passed a comprehensive bipartisan plan to establish the Taxpayer Home Protection Act, which will help homeowners at risk of losing their homes to tax foreclosure get extensions and exemptions on their property taxes.
"Our residents are facing tough economic times and are struggling just to make ends meet," said State Representative Robert Dean (D-Grand Rapids), a sponsor of the plan. "Too many of our families are losing their homes to foreclosures and we have to take action now. This plan will help end the foreclosure crisis in Michigan and help move our state forward."
The bipartisan Taxpayer Home Protection Act aims to streamline the process of struggling homeowners applying for an exemption to the property tax, as well as adds additional notification requirements so homeowners know exactly when their property could be foreclosed on and what forms of assistance are available to them. The plan also will exclude water and utility bills from items that can trigger foreclosure; and give homeowners more flexibility in repaying delinquent taxes before foreclosure.
According to RealtyTrac, Michigan reported 136,000 foreclosure filings in 2007 – a 68 percent increase from 2006 and 282 percent increase from 2005. Since the beginning of 2008, Michigan has reported a total of 62,138 foreclosures, posting one of the top five foreclosure rates in the country.
"In these tough economic times we must put extra protections in place for our working families," said State Representative Tim Melton (D-Pontiac), a sponsor of the plan. "This plan is not intended to bail out residents who simply don't pay their property taxes. It is meant to help residents understand this process and make them aware of their available options. By passing this plan today, we can help more of our residents remain in their homes as we work to get Michigan back on track."