Michigan Dems Propose Foreclosure Wait Period
admin on February 18th, 2009
If you are thinking of filing for bankruptcy get a free bankruptcy review, or file yourself with our bankruptcy forms for just $19.95. Thanks for visiting!
Michigan Democrats have proposed a law that would create a mandatory 90 day period after receiving a notice of foreclosure to allow homeowners time to meet with their mortgage lenders in order to negotiate mortgage modification terms.
The 90 day period is designed to force lenders to look at each homeowners position in order to determine if they qualify for to change their mortgage according to federally approved financial standards. If the borrowers qualify, banks and lenders would have to negotiate or go through the courts to foreclose. If the borrower didn’t qualify, the lender could take back the house in a faster process.
With more than 145,000 houses in foreclosure in 2008 and 11,400 foreclosure in January of 2009, the Democrats are trying to give lenders and borrowers options without putting a moratorium on foreclosures which could dry up home loans from banks and bring property values down even further.
For those homeowners that don’t qualify under the proposed guidelines, the 90 day waiting period would give them time to find new living arrangements and any other changes they need to make with the help of a counselor.
