In the midst of an economic downturn that has led many families to lose their homes, the Michigan Legislature, under HB 4542-4544, appears to be proposing the almost unthinkable - speeding up the post-foreclosure process.
The proposed law - while helping families facing foreclosure by proposing to extend the 90-day negotiating period for another year - proposes to cut the post-foreclosure redemption period in half. Currently, after a home-mortgage is foreclosed upon, the homeowner has six months to try to get another mortgage on the property or otherwise payoff the defaulted mortgage in order to keep the home.
As reported by mlive.com, Gail Madziar, vice president of membership and communications for the Michigan Banks Association, said that three months is enough time for a homeowner to figure things out, and that by that point "they better have done everything they can do to stay in their home." Essentially, nothing will change between the three and six month marks.
However, in an economy that appears to be rebounding, shortening the amount of time that an unemployed homeowner has to find work could be detrimental, especially if finding employment is all that stands between a homeowner and keeping the home. State Legislator Rashida Tlaib, (D-Detroit) stated that lawmakers "should be doing all that we can to keep our families in their homes."
One thing is for certain, shortening the redemption period speeds up the process. That means, more foreclosures, more families out of their homes and the taking away of one of the most valuable tools that many homeowners need in order to find a way to stay in their homes - time.
If you are facing foreclosure, speak with an experienced attorney to discuss your situation. Depending on the circumstances of your situation, you may have options for keeping or staying in your home, including bankruptcy or negotiating a deal with the mortgage lender.