The Michigan state government has passed a new law create a 90 day foreclosure moratorium. This will provide homeowners who are facing foreclosure a 90-day window that will allow them to stay in their house and potentially work out a new or modified mortgage with their lender or bank.
This new legislation will let Michigan homeowners delay any foreclosure proceedings for as long as 90 days if, after getting the homeowner receives a foreclosure notice, they meet with a housing counselor and also meet with the lender or the bank. Homeowners can arrange this will a wide variety of mortgage counselors, and a list of counselors that was generated by the Michigan State Housing Development Authority will have to be included in the foreclosure letter that is first sent to the homeowner.
It must be noted though that only those homeowners who meet certain financial standards could qualify for modified mortgage payments, and this mortgage assistance plan is not intended to help irresponsible Michigan homeowners. To see if you qualify contact a counselor. Click here.
If there are any banks or lenders who are refusing to rework mortgages for those qualified homeowners, these lenders will need to go to court to finish the foreclosure process. So it is in the best interest of lenders to work with the homeowner as the court process is more expensive and time-consuming than simply posting a notice in the local newspaper. Unfortunately, many experts predict that little can be done for people who have lost their sources(s) of income, such as their job, and who are no longer making any money and can’t afford to pay for any mortgage loans or bills.
This new foreclosure moratorium law seems to strike a balance between requiring judicial from the court process for foreclosures in certain circumstances, while also providing banks enough discretion to decide if someone meets financial requirements to modify their mortgage or receive mortgage help.
Like this site?