April 01, 2009 – (RealEstateRama) — Legislation to give homeowners on who are on the brink of losing their home a 90-day period to work out a payment plan with their lending institution passed the Senate Banking and Financial Institutions Committee last week. House Bills 4453-4455 would allow consumers who are on the brink of foreclosure a 90-day period to attempt a loan modification plan.
Further provisions of the legislation would require the lending institution to provide the borrower with written notice of the reason for default, information on the mortgage holder including the name, address, phone number, and an assigned contact with the mortgage holder. If an agreement is reached with the mortgage holder, the loan will not be foreclosed upon if the borrower is able to abide by the terms of the agreement. This legislation further stipulates that a borrower would not qualify for this program if they qualify for the Federal Loan Modification Program. Given the increasing number of foreclosures in this state, these bills are a big step in keeping Michigan citizens in their homes.
The MAR staff continues to monitor this legislation and will keep you apprised of any action on this package of bills as it moves through the legislative process.
