Lenders Foreclosing on Residential Mortgages Must Still Offer 90-Day Foreclosure Moratorium: Sunset is Extended to June 30, 2013

Posted byjeshuatlaukaPosted inUncategorized

Lenders who were hoping the 90-day postponement on many foreclosure by advertisements would come to an end December 31, 2012 will have to wait another 6 months.

 In 2009 the Legislature created a 90-day moratorium on foreclosure by advertisement to provide borrowers a chance to negotiate a loan modification with their lenders if the property was their principal residence.  Given the apparent stabilizing of the housing market, this program was set to end December 31, 2012. However  on December 12, Senate Bill 1172 was passed by both the House and the Senate- extending the 90-day moratorium on Foreclosure by Advertisement through June 30, 2013.

For more information, see the Legislative analysis here:

http://www.legislature.mi.gov/documents/2011-2012/billanalysis/Senate/pdf/2011-SFA-1172-B.pdf

 

 

Published by jeshuatlauka

Attorney at David, Wierenga & Lauka, P.C., business law firm in downtown Grand Rapids, Michigan. I serve as a legal advisor/ fractional GC to purpose-driven businesses. I am married with 4 kids. Above all I am a follower of Jesus Christ.

5 thoughts on “Lenders Foreclosing on Residential Mortgages Must Still Offer 90-Day Foreclosure Moratorium: Sunset is Extended to June 30, 2013”

  2. Hi- I live in Massachusetts. And I was wondering if the foreclosure by advertisement 90 day moratorium extended to June 30, 2013, is just in the state of Michigan? Does it apply to other states that are foreclosure by advertisement? Thank you- Sincerely, Karen Robinson-Roach

    Reply

    1. Karen,

      This is a Michigan statute, so it only applies to the State of Michigan. I believe the Massachusetts legislature, like many other states, has at times proposed laws similiar to Michigan, but I am uncertain as to the current state of the law in Massachusetts.

      Reply

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