Michigan activists organize to confront the governor

Organizers with the Moratorium NOW! Coalition to Stop Foreclosures and Evictions are gearing up for a Feb. 3 demonstration at the state Capitol in Lansing, Mich., when Gov. Jennifer Granholm delivers her annual State of the State address. Activists continue to demand that the governor declare a state of economic emergency in Michigan and take executive measures to give immediate relief to the people, including imposition of a two-year moratorium on foreclosures and evictions.

Vanessa Fluker speaking at Dec. 10 rally outside Bank of America in downtown Detroit. WW photo: Kris Hamel

Coalition leader Vanessa Fluker, an attorney who represents homeowners in foreclosure and eviction cases, told Workers World: “Now more than ever Michigan is in a state of economic emergency—everyone can see it and feel it—but the governor and legislature won’t act. They won’t declare a state of emergency. They won’t put a halt on foreclosures. They won’t do these things even though they don’t cost a dime, because that means taking sides with the people over the banks. We can’t wait another day for the people to get some relief.”

Conditions for workers and the poor in Michigan are dire. The state’s jobless rate increased a full point from November to December, with the loss of an additional 59,000 jobs in every sector of the economy. Officially unemployed are 10.6 percent of the workforce. Last year 173,000 workers in the state lost their jobs, on top of the approximately half-million who became jobless in the previous six years. (Detroit News, Jan. 22)

Unemployment and poverty rates for African Americans have been in double digits for years. In Detroit, a primarily African-American city, one in three residents lives in poverty. Flint and Kalamazoo are even higher, each with a 35.5 percent poverty rate. (Detroit News, Aug. 27)

Coalition organizers note that foreclosures continue unabated day after day, leaving many cities and towns with abandoned neighborhoods full of empty, vandalized homes. Home values statewide have plummeted to unprecedented levels. The median home value in metropolitan Detroit is now $53,000, while in the city of Detroit it is a shocking $7,500. (Detroit News, Jan. 14)

According to Fluker: “The Housing and Economic Recovery Act is the bailout bill that rescued Fannie Mae and Freddie Mac. HERA is a 315-page document that contains one page amending provisions to the consumer Truth in Lending Act. It mandates that banks and lenders do loan modifications or work out agreements with borrowers so that the net value of a home is greater than what it would be if it were sold under foreclosure. But this law is totally ignored by the bankers and politicians.

“According to HERA,” said Fluker, “given the low property values in Michigan, every single mortgage in Detroit would be eligible for modification. A two-year moratorium on foreclosures would give people a chance to take advantage of this act so they could stay in their homes and have loans that reflect their home’s real value and a fair, equitable mortgage. Right now it’s impossible to do that. Not one bank that’s announced a loan modification program has an effective mechanism set up to do it. That includes Countrywide, now owned by Bank of America, which is under court order because of its predatory lending practices to modify loans in 12 states, including Michigan.”

“The Obama economic stimulus plan, according to experts, will optimally create 158,000 jobs in Michigan over the next 18 months, not even enough to replace the jobs that were lost last year,” coalition organizer Jerry Goldberg told Workers World. “The people of Michigan need relief on a massive scale immediately. That’s why the demand for a state of economic emergency and a moratorium on foreclosures, evictions, utility shutoffs and plant closings is so crucial. Michigan leads the country in every area of economic devastation. Our proposals will cost nothing and provide people immediate relief while long-term solutions are found. In fact, there should be a national moratorium in place to allow the Obama economic plan to start working.”

For more information on the Feb. 3 demonstration, contact the Moratorium NOW! Coalition at 313-887-4344 or visit www.moratorium-mi.org.