Michigan Governor Rick Snyder signed a bill that changes Michigan’s foreclosure laws. The Governor signed into law SB 383 which changes the rules of redemption of a property that has been foreclosed. The new law gives greater protection to homeowners with equity, but also grants new protection to lenders and foreclosure purchasers. Michigan foreclosure law allows a homeowner a specific period of time after a foreclosure sale to recover, or “redeem” the property, by paying the mortgage off or by selling the property. This time period is a “Redemption Period”. For loans created after 1965, Homeowners retain a 180-day redemption period to redeem their property after a foreclosure sale if the amount due on the mortgage loan is greater than 2/3 the original loan balance. However, if you have paid your mortgage down, and have equity the new law gives you a longer redemption period. For homeowners whose loan balance due at the date of the foreclosure notice is less than 2/3 the original loan balance, the redemption period is one year.
Lenders and Purchasers also receive some new protections in the new law. Under the former law, foreclosure purchasers did not have a right to enter or to inspect the property during the 6 month – 12 month redemption period and the redemption period could not be shortened even if there was damage to the property. A lot of damage can occur during the redemption period. SB 383 allows the purchaser at the foreclosure sale to inspect the interior and exterior of the home during the redemption period. If certain damages are found, such as, a failure to maintain the property; boarded up or broken windows or doors; accumulation of rubbish, trash, or debris; stripped plumbing, electrical wiring, siding, metal material; or a missing furnace, water heater, or air conditioning unit, then the right of redemption can be cancelled. Effectively, if the homeowner in redemption does not care for the property, the right to redeem the property may be taken away from the homeowner. This amendatory act takes effect January 10, 2014. You may view the bill at the link below:
If you think that you may be facing foreclosure, or you have more than one mortgage on your home and cannot make your payments, is always important to get the expert help that you need from the attorneys at Resnick & Moss, P.C. We can help you make the right choices and achieve the best outcomes. Please do not hesitate to call, Resnick & Moss, P.C., at (248) 642-5400, for a free telephone consultation.