SIFE is a leadership organization that appeals to students interested in business and helping the community. In an effort to improve Mount Pleasant’s housing crisis, SIFE has teamed up with Listening Ear, 107 E. Illinois St., an organization focused on human service and housing assistance for Michigan residents, said SIFE President Amir Abu-Aita.

Abu-Aita, a Clio sophomore, said the project is part of an annual competition which requires SIFE teams to come up with ways to help their communities by focusing on an issue and finding a solution.

“Housing troubles are the number one issue in the United States, not to mention in Mount Pleasant,” Abu-Aita said. “We picked an issue that would help the economy and people’s lives if resolved.”

If the team wins the regional competition in Chicago, then they will go on to nationals in Minneapolis. From there, they have a chance to compete at the World Cup. The better they place, the more grants they will receive for philanthropy, projects and trips.

This year’s project focuses on holding seminars for community members thinking about buying a home or facing foreclosure. SIFE members work alongside Listening Ear’s housing counselor, Teagen Lefere, to put together presentations and counseling opportunities.

“We put on big seminars and reach out to people that are going through the troubles of purchasing a home or facing foreclosure,” Abu-Aita said. “People need to know that there are options and a way out.”

The first seminar was held on March 23, focusing on introducing homebuyers to the basic facts behind purchasing a home. Abu-Aita said about 24 people attended and the seminar received unanimous approval.

Kody Herman, Suttons Bay junior and SIFE vice president, joined Central Michigan University’s organization after hearing Abu-Aita’s project ideas and long term goals.

“No one wants to see a family out in the street,” Herman said. “The more educated people are, the less likelihood of the issue increasing. You can’t blame people for being scared, and we just want to help anyone in trouble.”

SIFE will release the dates of upcoming seminars in early April. They plan to make it a continuous project throughout the year.

Bloomfield Hills freshman Gabriel Daramola is the latest addition to CMU’s SIFE.

“SIFE is a great organization for students that have a passion for business and are interested in using their skills to do good for the community,” Daramola said.

Daramola said the group’s projects not only help the community, but by attending competitions, its members get their feet in the door with big-name corporations.

The crippling effects of the recent financial recession are evidence of the growing number of foreclosures across the state and the nation.

While some would say no area is immune, one may find fewer victims in Isabella County. County Treasurer Steve Pickens said Isabella saw just 12 foreclosure filings in 2009.

Despite the county’s low numbers, Teagen Lefere, housing counselor for Mount Pleasant’s Listening Ear Crisis Center, said she has seen a steady increase of customers seeking help with taxes and impending foreclosures.

“Probably one out of every 20 people are here for home-buyer education, and the other 19 are for foreclosure,” she said.

Tax trouble

Lefere attributes Isabella’s foreclosures to drops in income, mainly from those employed in the auto market and other factory-based industries in Michigan.

Pickens blames debt, in many cases.

“Sometimes, it comes down to having to choose between paying taxes and eating, feeding your family,” he said. “The repercussions from that? A lot of bank mortgages don’t get paid, a lot of taxes don’t get paid.”

Based on state law, Pickens said if a local entity or homeowner owes a large sum in taxes to the county, the property would be foreclosed.

He said the county “really tries” to prevent the situation until all options have been exhausted.

“(The owner) would lose all ownership on that property,” he said. “Even if they’ve had 30 years to pay off their house, the county would turn around and sell the property.”

According to the Isabella County Tax Sale, Crankers Coney Island, 1207 E. Pickard St., owed $16,081.16 in taxes within the last few weeks. Crankers owner and manager Jim Crank declined to comment on the matter, saying “everything’s been taken care of.”

Also, the house of the Sigma Pi fraternity, which is not active on campus, at 1016 S. Main St. is behind $6,866.76 in taxes, while P & J Party Store, 1018 W. Broadway St., owes $2,918.10.

A growing crisis

Isabella County ranks 59th in the state in foreclosure rates, with less than 1 percent subject to the situation, according to a RealtyTrac, Inc. database.

Michigan, as a state, ranks eighth in the nation for highest foreclosure rate, with 2.6 percent of housing units filing for foreclosure last year.

Mary Townley, director of the Michigan State Housing Development Authority’s Homeownership Division, said she has noticed a problem over the last 20 years.

“We’ve been at this as a state longer than any other state in the U.S.,” she said. “The industry had a rough term in the early 80s and struggles in the early 90s. Right now, is probably one of the worst (crises) that I’ve ever seen.”

But past economic and foreclosure crises have spawned increased resources, Townley said.

MSHDA offers several tips on its Web site for avoiding foreclosure. The site offers links to counseling centers by county, including Mount Pleasant’s Listening Ear.

“That’s very important with scams happening across the state,” Townley said. “People are asking for an exorbitant amount of money when these services are really offered for free.”

A survey of counselors in the state’s third quarter last year showed that 60 percent of those who received help became success stories.

For those in a “back tax black hole,” Pickens recommends considering partial payments and loans rather than considering the debt an insurmountable challenge.

“A lot of people think they can only pay (taxes) in a large sum,” he said.

Additionally, Pickens said borrowing money at a 4 or 5 percent interest rate is better than accumulating debt and trying to pay off the interest rates and fees on back taxes.

Act quickly

Townley is optimistic for the state’s ability to move beyond its financial challenges, pegging Michigan as a resilient place with a proven track record of overcoming its problems.

She said people need to take the necessary steps to find help before the problem of personal debt grows too large. In years past, she said, it was “just easier to walk away.”

“They still have the ability to call or not to call, but now there’s more of a nudge,” she said. “I am hopeful that every month we continue to look into every option, we start to see more people trying.”

Citizens Bank’s bid was slightly more than the listed minimum bid of $1.9 million. The bank will most likely look to repackage and sell the building at 711 W. Pickard St.

The property has been under the management of APR Services since Dec. 5, 2008, and they had until Thursday to sell the building to avoid an auction, according to court documents. The property’s listing price was $2.7 million.

The building, home of The Morning Sun newspaper, went into foreclosure proceedings after its owner, C.M.R. Investments, failed to make payments on its loan.

Two tenants, English Direct Mail Services and the Mount Pleasant Brewing Company, left the building prior to its foreclosure. The Mount Pleasant Brewing Company, owned by Mount Pleasant Mayor Jim Holton, moved to 614 W. Pickard St., and English Direct Mail was shut down following a fraud scandal.

A “For Sale” sign is placed outside the 143,121-square-foot building, which is owned by CMR Investments LP and houses The Morning Sun newspaper and The Morning Star Publishing Co.

If the court-appointed receiver — ARP Services ­­— does not sell the building by 10 a.m. Nov. 12, a public auction will be held at the Isabella County Courthouse and the building will be sold to the highest bidder.

ARP Services serves as an interim manager for under-performing companies and has managed the property for CMR Investments since Dec. 5, 2008.

In the case of a sale, ARP Services proposes to pay nearly $4 million worth of proceeds back to Citizens Bank. The receiver has requested to retain $50,000 so it can pay its operating expenses.

A story published by The Morning Sun last Thursday stated the building was being sold, but not the newspaper.

A separate legal published by The Morning Sun on Oct. 7 showed CMR Investments is the defendant in a lawsuit filed by Citizens Bank. CMR Investments is an affiliate of Brill Media, which formerly published the newspaper in addition to owning the building.

The lawsuit was first filed in October of 2008, said Dennis Haley, attorney for Citizens Bank.

“They have until Nov. 12 to pay $3.9 million before it goes for sale,” Haley said.

Haley said it is unlikely the building will be sold in time before the public auction.

“With the market the way it is, the building is not worth that much,” he said. “The mortgagor is not going to pay $3.9 million for a building that is worth $2 million.”

The property is listed for sale at a price of $2.7 million, according to a court document filed in May. The receiver requested all offers be $1.9 million or greater.

The Morning Sun has been a tenant of the Commerce Center building since the 1990s.
It has been owned and published by Brill Media and the Journal Register Company this decade, both of which filed for bankruptcy during their respective ownerships.

Brill Media filed for bankruptcy in 2002 and sold The Morning Sun, but retained ownership of the building.

JRC announced its Chapter 11 bankruptcy last February, but emerged from it in August. The company owns 20 daily newspapers and more than 180 non-dailies in six states.