Interest Rate Reduction Program Press Release

published by: published by: Treasurer's Office on 4/24/2017
Interest Rate Reduction Program Extended for 2017

Treasurer Eric R. Sabree joins Mayor Duggan and County Executive Evans to announce extension of successful foreclosure prevention program

FOR IMMEDIATE RELEASE

Detroit, Michigan –April 24, 2017 – Wayne County Treasurer Eric R. Sabree is pleased to announce that his office has successfully led an effort to extend a special program to reduce interest rates for homeowners at risk of foreclosure from 18% to 6%.

In alliance with Wayne County Executive Warren C. Evans and Detroit Mayor Mike Duggan, the Interest Reduction monthly payment agreement -- which had expired in 2016 -- has been reinstated in 2017 under a bill signed by Gov. Rick Snyder. The new program, which also reduces the interest rate to 6 percent from 18 percent, takes effect in April and runs through June of 2019.

"This is a great opportunity for people to reduce interest rates saving money and saving their homes," said Treasurer Sabree. "We thought it was a highly successful program last year and we worked hard with the help of many people to have it reinstated for 2017 by legislative action."

"We would like to get as many people as possible into the program formally known as the Interest Reduction Stipulated Payment Agreement," Sabree said.

The 2017 plan, similar in scope to the 2015- 2016 version, was signed into law by Gov. Rick Snyder and started April 10.

"Homeownership sets the foundation for strong communities and vibrant neighborhoods. Working with Treasurer Sabree, we’re committed to do everything we can to help Wayne County residents stay in their homes. After the success the program saw in 2016, I am pleased to see it reinstated this year," said Executive Evans.

In the program, homeowners are eligible to enter into payment plans at a reduced interest rate — 6%, compared to the usual 18% — and pay delinquent taxes. The result is a reasonable monthly payment amount that will help hundreds of families stay in their homes. The reduced interest plan is available only to those who own their primary residence.

"During the first two years of this program, nearly 50,000 Detroit families that were facing foreclosures were able to keep their homes," said Mayor Duggan. "Without it, we would not be seeing the recovery in our neighborhoods that is taking place. Thanks to Treasurer Sabree's efforts, thousands more Detroiters who are at risk of foreclosure will be able to access the help they need."

"There are new programs that will allow individuals to avoid foreclosure if they own and live in their home as the primary residence. Should they make the required payments, the interest rate, which is currently 18%, will be reduced to 6% and will avoid foreclosure," Sabree said. He also noted that the home does not need to be at risk of foreclosure to take advantage of this program. If any, delinquent taxes are owed one can enter into the lower interest rate payment plans to save money.

To contact the Wayne County Treasurer’s office send an email to taxinfo@waynecounty.com, visit us at 400 Monroe in Greektown, or call 313-224-5990.