Signed by Governor Jennifer Granholm

Vote Smart's Synopsis:

Vote to pass a bill creating a mechanism to prevent additional foreclosures.

Highlights:

-Allows borrowers and housing counselor to create a modified payment amount under the FDIC workout program (Sec. 3205). -Permits Michigan State Housing Development Authority to develop a list of approved housing counselors (Sec. 3205). -Tie-barred to HB 4453 and HB 4454

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that requires the calculation of a modified payment amount under the FDIC Workout Program for a borrower who has been unable to secure an agreement with a housing counselor to modify his or her mortgage loan.

Highlights:

-Specifies that if a borrower is eligible for a modification, the mortgage holder or servicer shall not foreclose under Chapter 32 of Act 236 of 1961, which deals with foreclosure of mortgages by advertisement, but may instead proceed under Chapter 31, which deals with foreclosure of mortgages by land contracts (Sec. 3205C). -Specifies that if a mortgage holder begins foreclosure proceedings under Chapter 32 in violation of this bill, then the borrower may file an action in circuit court to convert the foreclosure proceeding to a judicial foreclosure (Sec. 3205 C). -Specifies that this bill shall not take effect unless HB 4453 and HB 4454 of the 95th Legislature are enacted into law (Enacting Sec. 1).

Full Bill Text