Homeowners in Detroit suburb demand protection from foreclosures

Fannie Mae, which finances or guarantees one out of every five home loans in the US, listed losses of $185 million for Michigan. Ohio was not far behind at $101 million. While California and Florida also share in some of the highest rates of foreclosure, the losses current stand at $30 million and $21 million respectively in those states, which puts into relief the scale of the hardship in Michigan.

The mortgage delinquency in the state now stands at a staggering 8.34 percent, with an estimated 80,000 homeowners facing foreclosure. Southfield was for decades a prestigious address for Detroit autoworkers, especially skilled tradesmen, and professionals; Southfield schools were for many years national award winners and the envy of surrounding communities. The city now has 4 percent of its homes under foreclosure.

Under conditions of this human disaster, Democratic State Representative Paul Condino held a meeting to offer band-aids and bromides. He touted a bill recently passed by the Democratic-controlled state House of Representatives, which, if it were approved by the Republicans who hold the majority in the State Senate, would allow some homeowners with spiking adjusted rate mortgages to apply for a fixed-rate mortgage, if they met income and credit score requirements.