New Law Delays Michigan Foreclosures

[via BusinesWeek.com] A new law gives Michigan homeowners facing foreclosure a 90-day window to stay in their house and potentially work out a resolution with their lender.

The law goes into effect Sunday, July 5.

The legislation lets homeowners delay foreclosure proceedings for 90 days after getting a notice of foreclosure if they meet with a housing counselor and the bank. Lenders refusing to rework loans for those qualified homeowners would have to go to court to finish the foreclosure.

Only homeowners meeting certain financial standards could qualify for modified mortgage payments.
Counselors are available at no cost through the Michigan State Housing Development Authority and the U.S. Department of Housing and Urban Development.