Senate approves conference committee reports to help Michigan residents save homes from foreclosure

LANSING, MI – May 20, 2009 – (RealEstateRama) — The Senate today unanimously approved conference committee reports to help save more homes in Michigan from foreclosure by encouraging greater communication between lenders and homeowners, said Randy Richardville, the Senate’s lead member of the conference committee.

“Having one of the highest foreclosure rates in the nation, it was important for the Legislature to approve these measures to help struggling homeowners,” said Richardville, R-Monroe.  “We have developed a plan that will help residents who want to stay in their homes and are willing to take appropriate steps to do so.”

House Bills 4453 through 4455 revise Michigan’s “foreclosure by advertisement” process.

Under the legislation, the lending institution that holds the home mortgage in question would be required to send a written notice to borrowers before foreclosing on a principal residence.  If a homeowner decides to work with the lender, the two parties will have 90 days to participate in “pre-foreclosure” meetings and develop an agreeable solution.

“The Senate and House worked closely on this legislative package to help keep Michigan residents in their homes,” Richardville said.  “As chair of the Senate Banking and Financial Institutions Committee, I will continue to seek solutions that help families without unnecessarily tightening credit for future buyers.”

The compromise reached by the conference committee reports excludes some personal information on the published foreclosure notice and restores the judicial foreclosure provisions with broader criteria.  This gives lenders more options in seeking a solution instead of foreclosure.

The measures now go to the governor to be signed into law.