Title
Resolution to Approve Contracts with Legal Services of South Central Michigan, Housing Bureau for Seniors and Washtenaw County Treasurer for Mortgage and Tax Foreclosure Prevention and Counseling Services ($60,000.00 FY 2010 AAHTF and $100,000.00 FY 2010 General Fund)
Memorandum
The Office of Community Development (OCD) is requesting that City Council approve $40,000.00 in Ann Arbor Housing Trust Funds (AAHTF) to Legal Services of South Central Michigan, $20,000.00 in Ann Arbor Housing Trust Funds to the Housing Bureau for Seniors, $5,000.00 in General Funds to the Housing Bureau for Seniors and $95,000.00 in General Funds to the Washtenaw County Treasurer (and as MSU Extension’s fiduciary) for Mortgage and Tax Foreclosure Prevention and Counseling Services. The funds are included in the FY 2010 Community Development budget. The OCD is collaborating with the Tax and Mortgage Foreclosure Taskforce which includes the Washtenaw County Treasurer’s Office, Legal Services of South Central Michigan, MSU Extension, and the Housing Bureau for Seniors, numerous other local non-profits, private lenders and realtors to address the current mortgage and tax foreclosure crisis.
Washtenaw County had 1,433 mortgage foreclosure first insertions, the first legal notification from the lien holder that a mortgage is being foreclosed on and typically occurs after 90 - 180 days of non-payment, in the legal news and 703 sheriff’s sales in 2006, and 2,194 first insertions and 1,151 sheriff’s sales in 2007. In 2008, there were 1,439 sheriff sales. Michigan has one of the highest foreclosure rates in the nation. Fannie Mae has written off a greater volume of loans in Michigan than any other state. As homes are vacated and people move out of state, the housing values drop. The tax impact on local municipalities is significant. Michigan communities that have studied the impact of mortgage foreclosure have found that each foreclosed home costs $22,000.00 to $258,000.00 to the co...
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