Legislation Preserving the Foreclosure Redemption Period Signed by Governor

Legislation Preserving the Foreclosure Redemption Period Signed by Governor

WASHINGTON, D.C. – July 9, 2013 – (RealEstateRama) — This week, Senate Bill 383, now Public Act 104 of 2013, was signed into law by Governor Snyder. As you may recall, the initial legislative proposal was to shorten Michigan’s 6 month redemption period down to 2 months. With the signing of the new law, homeowners will still have the benefit of the 6 month redemption period in order to pursue short-sales and other transactions that provide for homeowner-to-homeowner transfers.

In addition, Senate Bill 383 expands upon the current law providing for criminal penalties for damage done during the redemption period by providing lending institutions with the flexibility to perform inspections on the property after Sheriff Sale to make sure it 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.

While Governor Snyder recognized the importance of signing this legislation into law, he insisted that further, specific follow-up measures are needed in order to protect homeowners, lenders, and communities. In addition, he believes that “keeping Michiganders in their homes must remain our first goal – it not only benefits the homeowner, but it also helps the lender ensure the home retains value and reduces vacant structures in our neighborhoods”. A workgroup will be scheduled within the next few weeks to find solutions to these issues. The MAR will continue to update the membership as this issue progresses.

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