HOUSE BILL No. 5925

 

March 9, 2010, Introduced by Rep. Johnson and referred to the Committee on Banking and Financial Services.

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

by amending section 3205a (MCL 600.3205a), as added by 2009 PA 30.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3205a. (1) Subject to subsection (6), before proceeding

 

with a sale under this chapter of property claimed as a principal

 

residence exempt from tax under section 7cc of the general property

 

tax act, 1893 PA 206, MCL 211.7cc, the foreclosing party shall

 

serve a written notice on the borrower that contains all of the

 

following information:

 

     (a) The reasons that the mortgage loan is in default and the

 

amount that is due and owing under the mortgage loan.

 

     (b) The names, addresses, name, address, and telephone numbers

 


number of the mortgage holder. , the mortgage servicer, or any

 

agent designated by the mortgage holder or mortgage servicer.

 

     (c) A designation of 1 of the persons named in subdivision (b)

 

an employee of the mortgage holder as the person to contact and

 

that has the authority to make agreements under sections 3205b and

 

3205c.

 

     (d) That enclosed with the notice is a list of housing

 

counselors prepared by the Michigan state housing development

 

authority and that within 14 days after the notice is sent, the

 

borrower may request a meeting with the person designated under

 

subdivision (c) to attempt to work out a modification of the

 

mortgage loan to avoid foreclosure and that the borrower may also

 

request a housing counselor to attend the meeting.

 

     (e) That if the borrower requests a meeting with the person

 

designated under subdivision (c), foreclosure proceedings will not

 

be commenced until 90 days after the date the notice is mailed to

 

the borrower.

 

     (f) That if the borrower and the person designated under

 

subdivision (c) reach an agreement to modify the mortgage loan, the

 

mortgage will not be foreclosed if the borrower abides by the terms

 

of the agreement.

 

     (g) That if the borrower and the person designated under

 

subdivision (c) do not agree to modify the mortgage loan but it is

 

determined that the borrower meets criteria for a modification

 

under section 3205c(1) and foreclosure under this chapter is not

 

allowed under section 3205c(7), the foreclosure of the mortgage

 

will proceed before a judge instead of by advertisement.

 


     (h) That the borrower has the right to contact an attorney,

 

and the telephone numbers of the state bar of Michigan's lawyer

 

referral service and of a local legal aid office serving the area

 

in which the property is situated.

 

     (2) A person who serves a notice under subsection (1) shall

 

enclose with the notice a list prepared by the Michigan state

 

housing development authority under section 3205d of the names,

 

addresses, and telephone numbers of housing counselors approved by

 

the United States department of housing and urban development or

 

the Michigan state housing development authority.

 

     (3) A person shall serve a notice under subsection (1) by

 

mailing the notice by regular first-class mail and by certified

 

mail, return receipt requested, with delivery restricted to the

 

borrower, both sent to the borrower's last known address.

 

     (4) Within 7 days after mailing a notice under subsection (3),

 

the person who mails the notice shall publish a notice informing

 

the borrower of the borrower's rights under this section. The

 

person shall publish the information 1 time in the same manner as

 

is required for publishing a notice of foreclosure sale under

 

section 3208. The notice under this subsection shall contain all of

 

the following information:

 

     (a) The borrower's name and the property address.

 

     (b) A statement that informs the borrower of all of the

 

following:

 

     (i) That the borrower has the right to request a meeting with

 

an employee of the mortgage holder. or mortgage servicer.

 

     (ii) The name of the person designated under subsection (1)(c)

 


as the person to contact and that has the authority to make

 

agreements under sections 3205b and 3205c.

 

     (iii) That the borrower may contact a housing counselor by

 

visiting the Michigan state housing development authority's website

 

or by calling the Michigan state housing development authority.

 

     (iv) The website address and telephone number of the Michigan

 

state housing development authority.

 

     (v) That if the borrower requests a meeting with the person

 

designated under subsection (1)(c), foreclosure proceedings will

 

not be commenced until 90 days after the date notice is mailed to

 

the borrower.

 

     (vi) That if the borrower and the person designated under

 

subsection (1)(c) reach an agreement to modify the mortgage loan,

 

the mortgage will not be foreclosed if the borrower abides by the

 

terms of the agreement.

 

     (vii) That the borrower has the right to contact an attorney,

 

and the telephone number of the state bar of Michigan's lawyer

 

referral service.

 

     (5) A borrower on whom notice is required to be served under

 

this section who is not served and against whom foreclosure

 

proceedings are commenced under this chapter may bring an action in

 

the circuit court for the county in which the mortgaged property is

 

situated to enjoin the foreclosure.

 

     (6) If the borrower and the person designated under subsection

 

(1)(c) have previously agreed to modify the mortgage loan under

 

section 3205b, this section and sections 3205b and 3205c do not

 

apply unless the borrower has complied with the terms of the

 


mortgage loan, as modified, for 1 year after the date of the

 

modification.