LANSING, Mich. ––State Senator Glenn S. Anderson, along with a majority of his Senate colleagues, voted yesterday to pass a legislative package approved by a House and Senate conference committee that will protect homeowners from foreclosure for 90 days. After years of fighting to help Michigan residents stay in their homes, Democrats were able to ensure that the package also requires lenders to work with residents to negotiate payments and prevent home foreclosures.

“Michigan homeowners have been struggling with home foreclosure for too long, but with the passage of these bills, we are finally able to offer them some relief,” said Sen. Anderson. “Our efforts will not only give homeowners more time to avoid home foreclosure, but also require that lenders must work with homeowners in a fair and legal manner in order to look out for the best interest of Michigan residents, an important measure in light of recent banking and mortgage lender scandals.”

Senator Anderson strongly opposed previous changes made by Senate Republicans that removed the ability to force banks to negotiate with homeowners before foreclosing, and the compromise passed includes an important judicial enforcement provision that Democrats insisted on which will hold lenders accountable. Elements of the foreclosure protection package as passed include:

• Home loans that qualify for modification will qualify for judicial intervention if the lender chooses not to cooperate to modify payments.
• Lenders will be required to send a notice of foreclosure to all homeowners. Currently, the lender has no obligation to notify the borrower.
• Borrowers may request a meeting within 14 days of receiving a foreclosure notice, and once a request is made, the lender agrees to stop any foreclosure proceedings for 90 days.

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