New Michigan law helps those facing foreclosure - Bills.com News

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New Michigan law helps those facing foreclosure

Tuesday, Jul 7, 2009

A new law has taken effect recently in Michigan that may give homeowners a bit of breathing room when it comes to mortgage refinancing .

The new legislation, which was signed into law in May and took effect in July, gives homeowners facing foreclosure an additional 90 days to change their mortgage loan with their lenders.

"We are committed to protecting Michigan families and helping them keep their homes," Gov. Jennifer Granholm said.

In additionto putting a hold on foreclosure, the law forces lending companies to provide a written warning that the homeowner has defaulted on their mortgage and must provide information on who to contact.

In order to take advantage of
help from the new law, homeowners must contact a housing counselor through the state's Housing Development Authority . Having done that, lenders must work with homeowners on trying to develop a modification.

Once the agreement is changed, foreclosure
is avoided provided the homeowner sticks to the new agreement.

According to Realty Trac, there were 13,891 foreclosed properties in Michigan in May. In other words, one in every 325 housing units was in foreclosure .
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