The Michigan House and Senate have compromised on a deal that would allow home-owners 90 days to stay in their homes and work out a compromise with their banks.
After getting notice of a foreclosure the seller can meet with the Michigan Housing Development Authority who will provide counselors. If a lender refuses to work with the home owner they would have to go to court to appear before a judge in order to proceed with the foreclosure.
I sure hope this helps the banks work with the home owners in trouble. We spoke to a lady today who has 5 kids under 18 that her husband lost his job and they lost their home. They had over 70K equity in it. So sad, now they need a place to live.
Not all foreclosures are due to sub-prime loans. In fact none of my clients have defaulted except one in all these years. We told them not to buy but they found a crooked lender (not in Ann Arbor) who funded them.
The new law will last for 2 years and IF you have already received notice of foreclosure you may not qualify as the law will not go into effect for 45 days.
Visit the Michigan Housing Development Web-site.
As I have written many times if you are in trouble with you loan, a job, an illness. Please don’t stick your head in the sand, call us and we will do everything we can to help you.
I will keep you posted as more details become available.