Ending the Foreclosure Crisis and Ensuring Affordable Housing

 

In Michigan’s 4th Congressional District, there are currently over 10,000 foreclosures in process.  In the fourth quarter of 2013, the national rate of new foreclosures was at “pre-crisis levels… but Michigan stood out as having the highest ‘foreclosure starts’ among all other states.”[30] Warren understands that sometimes the best way to approach a problem is with bold ideas. A potential remedy to the foreclosure crisis is to introduce legislation to allow homeowners that would otherwise be foreclosed upon, to rent their homes at the going market rate, during pending foreclosure.  In other words, the banks would act as landlords. If the tenants make all of their payments and do not break the conditions of a lease, then the tenants would be allowed to buy their homes again from the bank after a period of three years.

According to the Center on Budget and Policy Priorities, in 2012, about 33 percent of all Michigan’s households were renters [38]. With hard-working individuals and families struggling to make ends meet, seniors in need of safe and stable housing, and high rates of veteran homelessness, an advocate who will fight for access to affordable housing dollars for all is vitally important. Warren also understands that our seniors need to have access to rental assistance to ensure that they can live in dignity. With a recent University of North Carolina study [39] showing that it may be less expensive to house the homeless than to allow them to remain without a place to live, Warren understands that increasing access to affordable housing is fundamental to a successful state and country.

Finally, Warren supports investigating ways to implement a targeted moratorium on foreclosures to apply to the nation. Warren will implement a robust constituent services program, partnering with a team of the best and brightest professionals to address foreclosures in the 4th Congressional District during the moratorium process.