Hot off the press! Michigan lawmakers struck a deal last week to give homeowners facing foreclosure a 90-day window to stay in their house and potentially work out a deal with their lender.

The legislation lets homeowners delay foreclosure proceedings if, after getting a notice of foreclosure, they meet with a housing counselor and the bank. Only homeowners meeting certain financial standards could qualify for loan modification.

There is a list of housing counselors prepared by the Michigan State Housing Development Authority will have to be included in the foreclosure letter for the homeowner to be eligible.

This bill is a great relief to homeowners who are struggling with the prospect of foreclosure. Also, it is a great deal for the banks, who naturally, do not want a long and drawn out foreclosure process which costs both time and money. Everybody wins, the homeowner keeps their home and the bank (and likewise the homeowner) does not have to go through a foreclosure on that property.

The House quickly passed the bills 93-15 after they won approval in a conference committee that had resolved differences. The Senate will send them to Governor Jennifer Granholm soon. However, the legislation will not take effect until 45 days after it becomes law, so homeowners who have already gotten notice of foreclosure will not get a 90-day lifeline. The new law will last for two years and is seen as a compliment to President Obama’s housing plans.

We are sure that as this bill becomes law it will be watched with much interest. We will keep you posted.

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

Search all listings in Michigan with pictures and tours…Free!

Kathy Toth & Team: Ann Arbor Area Real Estate Experts

www.KathyToth.com

Keller Williams Realty

y

You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.