Signed by Governor Jennifer Granholm

Vote Smart's Synopsis:

Vote to pass a bill that would prohibit a party from initiating proceedings to foreclose a mortgage of a principle residence if various stipulations as mandated in the bill applied.

Highlights:

-Specifies under which circumstances a party may foreclose a mortgage by advertisement (Sec.3204). -Requires foreclosing party to send a written notice to borrowers before foreclosing on a principal residence (Sec. 3204). -Grants 90 days to participate in "pre-foreclosure" meetings (Sec. 3204). -Requires the foreclosing party to be the owner of the indebtedness or of an interest in the indebtedness secured by the mortgage or the servicing agent of the mortgage (Sec. 3204). -Makes Sec. 1 effective 30 days after the bill is enacted into law (Sec. 3205).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that prohibits the commencement of foreclosure proceedings under certain circumstances.

Highlights:

-Prohibits the initiation of foreclosure proceedings on a principal residence if the borrower has not received notice of foreclosure (Sec. 3204). -Allots 90 days to borrowers who have received notice of foreclosure to meet with a loan modification officer, as long as such meeting is arranged within 14 days of such notice, before foreclosure proceedings can begin (Sec. 3204). -Prohibits the initiation of foreclosure proceedings if the borrower and lender have agreed to modify the loan and the borrower is not in default under the modified agreement, or if the borrower is otherwise eligible for a loan modification (Sec. 3204). -Specifies that these prohibitions on the initiation of foreclosure proceedings only apply within two years after the enactment of this bill (Sec. 3204).

Full Bill Text