Recent legislation gives additional time for homeowners facing foreclosure to work with lenders.
May 27, 2009
Source: Frank Mortl, III
Job Title: Chief Executive Officer
Phone: (269) 382-1597
Kalamazoo, Michigan - May 27, 2009: The Greater Kalamazoo Association of REALTORS® (GKAR) announced today their support of recent legislation signed into law by Michigan Governor Jennifer Granholm which would give homeowners on the brink of losing their home a 90-day period to work out a payment plan with their lending institution.
The revised payment schedule will allow consumers who are approaching foreclosure a three-month window of opportunity with which a loan modification plan can be negotiated. Provisions within the recently passed legislation would require the lending institution in question to provide the borrower with written notice of the reason for default, information on the mortgage holder including the name, address, phone number, and an assigned contact with the mortage holder. If an agreement is reached with the mortage holder, the loan will not be foreclosed upon if the borrower is able to abide by the terms of the agreement.
Additionally, the bill includes language that gives homeowners the right to take their case to court if a lender does not cooperate on a loan modification plan. The legislation further stipulates that a borrower would not qualify for this program if they qualify for President Obama's Federal Loan Modification Program.
"While GKAR is encouraged by the effort in Lansing to keep homeowners in their homes, some members are concerned that the legal aspects of this legislation may clog up the judicial system, thus dragging the process out and increasing costs" says Frank Mortl, III, Chief Executive Officer of GKAR. "However, given the increasing number of foreclosures in this state, recent initiatives to keep Michigan citizens in their homes is a big step in the right direction. Hopefully, with fewer foreclosed homes on the market, real estate activity will experience more first-time homebuyers taking advantage of current homes for sale and allow for a positive trickle-up effect on our local economy."
GKAR encourages anyone interested in the purchase of a home to contact a local greater Kalamazoo REALTOR® for more information on homebuying opportunities and the advantages available to both new and trade-up buyers. For more information on the many reasons to consider the purchase of a home in the greater Kalamazoo area, visit gkar.com or contact the GKAR office at 269.382.1597.