Governing uncertainty: Foreclosure, finance, and the American dream in Michigan

Michigan alone has accounted for more than one of every eight foreclosures nationwide since the housing crisis began in 2006. This dissertation, researched at the height of new foreclosure activity (August 2009--October 2010) in mid- and eastern Michigan, argues that widespread foreclosure undermines American cultural citizenship. Data for the dissertation include fourteen months of participant observation at housing counseling agencies, industry trainings, outreach events, and political rallies; interviews with distressed homeowners (n=29) and housing professionals and activists (n=34); and secondary materials including legislation, government analyses, popular media, and industry training materials.;My key claims are (1) that threatened foreclosure upends claims to upward mobility, the American dream, and national greatness premised on a broad middle class. (2) The foreclosure crisis accelerated the reconfiguration of state power such that finance is more integral to the state and everyday life. Simultaneously, citizens' access to the state is mediated both through banks and non-profits that try to help homeowners avoid foreclosure. Together, personal experiences facing foreclosure and their governance in everyday life change the substantive rights of American citizenship, namely homeownership, state legitimacy, and belief in the consonance of business and public interests.;As the birthplace of the American auto industry and strongest labor union, Michigan's history validated beliefs in upward mobility, the blue-collar middle class, and economic and social inclusion for African Americans--all told, the prototype of the good life. These were instrumental to the postwar vision of shared affluence, the most visible sign of which was owning a home. From the perspective of distressed homeowners and housing professionals, Michigan's post-industrial struggles, including foreclosures and the state's infamously "shrinking cities," continued to rupture the social compact and, similar to deindustrialization, privilege finance over community wellbeing.;The signature, albeit flawed, policy response to the foreclosure crisis is the federal Home Affordable Modification Program (HAMP) administered through mortgage servicers and sometimes with housing counseling agencies, such as those where I conducted fieldwork. Michigan implemented an additional protection in 2009 so that distressed homeowners, with the help of a housing counselor, could negotiate alternatives to foreclosure. Financial institutions failed to implement HAMP and other programs effectively, confounding both homeowners' and the state's efforts to safeguard citizens' welfare. Counseling agencies that offered frontline assistance simultaneously distanced their clients from the state and taught them to lower their expectations for modifications. Homeowners' experiences strained their loyalty to financial institutions they believed served their interests and, as they negotiated under the auspices of state or federal programs, their trust in public institutions. In conclusion, I argue that these mediations refigure the locations and practices of governance and citizenship.