The Michigan state government has passed a new law create a 90 day foreclosure moratorium. This moratorium will give homeowners who are struggling to make their mortgage payments a temporary reprieve from the threat of foreclosure. This will give homeowners who are being foreclosed on a chance to stay in their homes for 90 days while they work on getting a new or modified mortgage with their lender or bank.
The new legislation will allow Michigan homeowners to postpone any foreclosure proceedings for up to 90 days if, after receiving a foreclosure notice, they meet with a housing counselor and also meet with the lender or the bank. Homeowners can speak to a wide variety of mortgage counselors to arrange this, 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.
This mortgage assistance plan is only intended to help those Michigan homeowners who meet certain financial standards. To find out if you are eligible for this program, please contact a counselor. This button will take you to another page.
If banks or lenders are refusing to rework mortgages for qualified homeowners, they will need to go to court to finish the foreclosure process. Lenders would rather work with the homeowner to avoid the costly and time-consuming court process. This is a difficult time for many people who have lost their jobs and their income. It is hard to predict what will happen to them in the future. Many experts believe that it will be difficult for these people to find new jobs or to afford to pay their mortgage loans or bills.
This new law prevents banks from foreclosing on a house without going through the court process first. It also gives banks the discretion to decide if someone is eligible for a mortgage modification or other financial assistance.