Protections against home foreclosure extended
July 01, 2011
FOR IMMEDIATE RELEASE Friday, July 1, 2011
Contact: Sara Wurfel
Lt. Gov. Calley signs bill extending laws he helped write as a state representative
LANSING, Mich. - Laws helping homeowners avoid foreclosure that were set to expire at the beginning of next week will be extended by another six months.
Senate Bill 398, sponsored by state Sen. Mike Green, extends laws that established procedures for homeowners who are behind on their mortgage payments to work with their lender to modify loan agreements and avoid foreclosure. The laws, which also included other protections such as requiring lenders to mail written notices warning of foreclosure, were set to expire on Tuesday, July 5.
Since Gov. Rick Snyder was traveling out of state Friday to attend a wedding, the lieutenant governor signed the bill extending the protections against foreclosure. Article V Section 26 of the Michigan Constitution gives authority to the lieutenant governor when the governor is traveling outside the state.
This is the first bill Lt. Gov. Calley has signed into law, but it is not his first time working on the issue. In 2009, Calley helped write the original legislation when he was serving as a state representative on the House Banking and Financial Services Committee and on the joint conference committee that wrote the final draft.
"Extending these protections is in everybody's best interest," Calley said. "Most importantly, these protections give families who are at risk of foreclosure the opportunity to save their home, but they also help prevent vacant houses from sitting empty and bringing down property values throughout the neighborhood."
The lieutenant governor also noted that in this environment, banks often lose money on foreclosed properties that go unsold, harming the state's overall economy.
With this extension, the protections against home foreclosure are extended until Jan. 5, 2012.