Michigan Homeowners To Get Foreclosure Break

By: Associated Press
By: Associated Press
New law would allow homeowners to stay in house while looking for relief.

** FILE ** In this July 2, 2008 file photo, a foreclosed home is seen for sale in Sacramento, Calif. A record 9 percent of American homeowners with a mortgage were either behind on their payments or in foreclosure at the end of June, as damage from the housing crisis continues to mount, the Mortgage Bankers Association said Friday, Sept. 5, 2008. (AP Photo/Rich Pedroncelli, file)

Michigan lawmakers have struck a deal to give homeowners facing foreclosure a 90-day reprieve to stay in their house and potentially work out something with their lender.

Legislation was approved 6-0 by a House-Senate conference committee Wednesday afternoon. The full House plans to vote later in the day, and the bills should reach Gov. Jennifer Granholm for her signature soon.

The plan would make housing counselors available to set up a meeting between a homeowner and lender.

Only homeowners meeting certain financial standards could qualify for lower mortgage payments. The bills were modified to ensure fewer foreclosure decisions end up in courts. Judicial foreclosures are more time-consuming and expensive for banks.

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