The Michigan Senate has passed Senate Bills 380-383, sound public policy that will keep the six month foreclosure redemption period intact. Senate Bill 383 was amended to provide lending institutions with the flexibility to perform an inspection on the property after the property goes to Sheriff Sale. This is to ensure that the property is being kept up and not being stripped of its valuables. If the bank finds that the property is being stripped of its possessions or vandalized, the bank may take the homeowner to court to accelerate the redemption period. One of the major concerns raised by opponents of the six month redemption period was that, in some instances, properties were being stripped of their valuables before the bank could take ownership. This provision will allow the bank take the property back in an expedited fashion should it be put in harms way. However, if the property is being kept in good condition, the homeowner keeps the entire six month redemption period, as written in current law. In turn, he or she can look to pursue options that support homeowner to homeowner transactions, including a short sale. These are options that have been strongly supported by our REALTOR® membership. Thank you to all of the REALTORS® who contacted their legislators and shared their experiences to illustrate why preserving the foreclosure redemption period is vital. Having only passed the Senate, the bills still must move through the House before going to the Governor for his signature. We will keep you updated on this legislation as it progresses in the coming days.
Posted on: Tue, 11 Jun 2013 20:02:19 +0000
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