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.