Bankruptcy INK

Looks like the political machine in Lansing understands the dire financial home foreclosure and bankruptcy epidemic destroying life in the Midwest, particularly in Michigan. The Michigan House of Representatives unveiled a package of bills that will, according to them, jumpstart Michigan's home sales market and protect residents from losing their homes when resident homeowners lose their jobs to outsourcing or downsizing.

"This package is designed to jumpstart Michigan's economy by increasing home sales, and it has the added benefit of creating stronger communities by empowering more of our residents to buy homes of their own," House Speaker Andy Dillon (D-Redford) said Monday. The plan is expected to pass the Democratic majority House, but might run into that usual political trouble when it heads over to the GOP-Senate.

According to Housedems.com, the plan will eliminate the so-called pop-up tax for Michigan residents who buy a house during the next 18 months. Residents who purchase a home during this window will not have to pay the pop-up tax for as long as they own the home. Under the plan, a home buyer could save up to $1,513 on the purchase of a $100,000 home or up to $3,405 on a $225,000 home, based on statewide average tax rates.

How all this will affect the flood of foreclosures spreading throughout Southeast Michigan, the record amounts of bankruptcy filings, and a failing economy?? Probably won't be known that for quite some time, but at least the state is trying to do something to reverse Michigan's recent misfortunes.

Their other part of the package has wording that sounds like consumers might be able to qualify for a state-driven private-public second mortgage loan to protect their homes for those who have lost jobs to outsourcing and downsizing, but that sounds a little far-fetched at this point.