LANSING―The 90-day foreclosure prevention program set to expire July 5 would be extended by two years under legislation introduced by Sen. Mike Green.
“Michigan has one of the highest unemployment rates in the nation and one of the highest foreclosure rates as well,” said Green, R-Mayville. “Many Michigan families are finding it difficult to make ends meet and stay in their homes.
“The foreclosure prevention program encourages cooperation between lenders and homeowners. It helps people remain in their homes while benefiting lenders by getting mortgages current again.”
Under the program, mortgage lenders are required to provide homeowners with written notice of a potential foreclosure before proceedings begin. The notice includes contact information for a lender representative who can make mortgage modifications, as well as a list of independent housing counselors available to assist the homeowner.
Assisted by a counselor, homeowners could then request a meeting with their lender, resulting in a 90 day period for negotiating a mortgage modification, if applicable. Borrowers who do not take the steps required under the program would still be subject to foreclosure proceedings.
“Unnecessary foreclosures negatively impact the whole community by depressing property values and contributing to the deterioration of the local neighborhood,” Green said. “This program helps to avoid that without increasing costs on homeowners who are meeting their obligations.”
Senate Bill 398 has been referred to the Senate Committee on Banking and Financial Institutions for consideration.
For more information or to contact Sen. Green, please visit www.statesenatormikegreen.com.