Michigan’s foreclosure law changed dramatically a couple of years ago to
encourage the evil bankers, uh, sorry, responsible mortgage companies to
assist homeowners in keeping their homes.
I have seen no statistical studies. Based on what I hear from Michigan
bankruptcy and foreclosure clients, not many people actually get modifications
out of this process. Like all the other government programs.
photo image: dreamstime
It does give you more time, 3 months plus, to adjust your life.
The temporary law has been extended once, and the legislature has passed
another extension with significant changes to the Michigan foreclosure laws.
You can read the bills, there are three of them by clicking on these links:
The old law required the scumbags, uh, sorry, mortgage companies, to publish
a notice somewhere, always appeared in the Legal News, with your address.
et cetera, advising you of your right to request a modification within 14 days.
The new laws make publishing the notice in a newspaper, optional.
image credit: dreamstime
You can bet that will no longer be done, as it enables lawyer, realtors, and
hustlers to send form letters to solicit business from potential foreclosure
victims, and mortgage companies think you know too much about your rights
as it is.
If no timely request, they could get on with the process of taking your house.
If you made the request on time, the mortgage company was required to
provide an agent to meet with you to discuss modification. You had to give
them financial information about yourself, of course.
Son of a gun, every mortgage company I heard about simply hired the law
firm that did their foreclosures, and, you could go to their office.
New law: agent has to be a person or someone within the mortgage company.
It will be interesting to see how they manage that.
Benefits to mortgage companies: homeowners liable for damages incurred
during the redemption period, and, 6 month, down from 12 month, redemption
period for non farms more than 3 acres in size.
What do you think?