Michigan law gives those in foreclosure more time
A new Michigan law may help those who are facing mortgage debt problems.
The law, which was signed in May and took effect recently, gives homeowners in the state who are facing foreclosure an additional 90 days to negotiate with their lenders on a modification to their mortgage.
Gov. Jennifer Granholm said the new law shows that the state is committed to making sure families in Michigan stay in their homes.
“This new law delivers on that commitment by providing homeowners extra time and assistance to save their home and preserve their American dream,” Granholm said.
Now lenders must provide written notice to homeowners if their mortgage is in default and also must relay additional contact information.
Homeowners need to get in touch with a housing counselor at the Michigan State Housing Development Authority in order to take advantage of the law. Once they do so, an attempt must be made by their lender to modify the loan.
According to statistics for May from RealtyTrac’s website, one in every 325 housing units in the state was in foreclosure, a ratio that represents 13,891 properties in Michigan.