Yes, Michigan’s new foreclosure law has a number of provisions helpful to homeowners.
Even if you cannot afford to pay, the new law gives you an extra 90 days to stay in your home, simply by requesting a meeting with the mortgage holder or servicer.
You should go to the Michigan State Housing Development Authority, or MSHDA, website to find out how to get a FREE counselor.

DO NOT PAY ANYONE FOR MORTGAGE MODIFICATION ADVICE.

At least, until you use the free counselors available.

You need to have your income information, last year’s tax returns, and proof of your income year to date, to make meeting with the counselor and mortgage company meaningful.

The hoops you jump through can seem complex, but it is worth it, if you want to use every thing you can to keep your home.

At or after the meeting with the mortgage company representative, which will probably be the lawyer hired by them to do the foreclosure, you find out if you qualify for a mortgage modification.

The first qualification test is whatever guidelines apply to your mortgage, FNMA has its own, some of the servicers have their own, HAMP has its set.

If you do NOT qualify there, you still get another chance under the state guidelines.

These are, amortizing 80% of the principal balance, after waiving late fees, over 40 years, from the date of the modification, at 3% interest.

If any or all of these get that mortgage payment down to 38% of your gross income, you qualify for a modification.

Your mortgage company does not have to agree to any modification.

But, if they do not, they have to foreclose through the court, and not by publication in the Legal News.

This opens up the chance to use the produce the note foreclosure defense, more on that in another post.