New Detroit plan would help 31,000 residents avoid foreclosure

Detroit Mayor Mike Duggan announced the "Pay as you stay" plan on Wednesday. The housing plan is intended to help residents avoid tax foreclosure by easing the financial burden on the city's lowest earners. About 31,000 residents could help avoid foreclosure with the aid of the plan, which would eliminate all interest, penalties and fees and the only balance due would be back taxes or 10 percent of the home's value. The plan still needs approval by the state legislature.

DETROIT - A judge’s recent ruling will stop Wayne County foreclosures this year on occupied homes and occupied commercial properties.

The move follows Treasurer Eric Sabree’s office filing a motion in Wayne County Circuit Court requesting that the redemption period on foreclosures be extended to March 31, 2022. County officials say there's been continued economic impact of the coronavirus pandemic.

On Friday, Judge Timothy Kenny issued an order to keep the properties off the annual auction.

All homeowners still must make property tax payments, Sabree said in a release.

About 2,400 owner-occupied homes, 4,100 non-owner occupied residential properties, and 178 occupied commercial properties in the county face foreclosure.

A similar request was granted in March 2020 when Sabree asked that all properties in Wayne County be withheld from foreclosure.

"Our number one priority remains keeping people in their homes, and too many Wayne County taxpayers are still suffering significant economic hardship due to the COVID-19 crisis," Sabree said. "Knowing that our recovery will take some time, we want to make some allowances in light of the pandemic."