Senate Panel Backs Bills to Tighten Foreclosure Rule

May 23, 2013
Detroit Free Press  
mortgage lending news

In Michigan, a Senate committee has pushed through a legislative package intended to strengthen rules governing foreclosures in the state. One measure would extend the grace period before foreclosure proceedings begin to 120 days from 90 days currently and abbreviate the redemption period -- when homeowners can redeem or sell a home before it goes into final foreclosure -- to 60 days from six months. While the financial industry supports the plan, real estate agents and housing advocates warn that the move will only weaken an already fragile housing market. Realtor John McArdle of Remerica Hometown One in Plymouth, for example, says most short sales would not be able to close. Lawmakers will need to move quickly on the proposals, as the 90-day grace period expires on June 30. Bill sponsor Darwin Booher (R-Evart) hopes that the full Senate will approve the changes before the legislature breaks for summer recess on June 14.
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