I had indicated in a previous post that the 90 day moratorium on all foreclosures by advertisements in Michigan was set to expire on June 30th, 2013 – with no indication it would be extended.
Well, the Michigan Senate HAS indicated it will be extended – to January, 2014 – in Senate Bill 380.
The Bill was tie barred with 3 other bills and all are on a fast track, sent to the Finance Committee on May 22nd, and as of May 28th, the Senate Finance Committee has proposed that the Bill be given “immediate effect”
See the Senate Fiscal Analysis here: http://www.legislature.mi.gov/documents/2013-2014/billanalysis/Senate/pdf/2013-SFA-0380-F.pdf
Some of these various other bills would actually seek to reduce the redemption period in certain circumstances. See an article yesterday in the Detroit Free Press for a further discussion of these bills. http://www.freep.com/article/20130602/NEWS06/130602001/Michigan-bill-could-cut-foreclosure-redemption-period
For Lenders, this potentially looks like a compromise; the legislature undoubtedly sees the value in homeowners being offered loss mitigation opportunities as opposed to foreclosure. After all, loss mitigation efforts are intended to help those who can actually be helped- people experiencing temporary hardships, as opposed to those who likely could not have realistically afforded the loan they entered into.
it makes sense that once foreclosure has taken place, to get the property into the hands of the lender, and off their books, as soon as possible. These bills seem to address both values – home ownership and reducing the amount of vacant/foreclosed real estate in Michigan.
Purpose Driven General Counsel 
Is there still a 90-day moratorium on foreclosures by advertisement or can the lender go right from the 30-day acceleration letter directly into a foreclosure by advertisement without waiting 90 additional days? Thank you.
Hi Chuck, the answer is no. Effective January 2014 the moratorium is no longer in effect. Lenders can foreclose without providing a defaulted borrower to meet with them to discuss modification before foreclosing by advertisement.