LANSING – State Representative Fred Miller (D-Mount Clemens) recently introduced a plan that will give more foreclosed residents the chance to redeem their home by allowing county registers of deeds to calculate the amount needed to regain ownership of their home. Today, that plan was brought up for discussion in House Committee.
"Many of our hard-working families are struggling to make ends meet in these tough economic times," Miller said. "We must do everything we can to support and stand by them. That means ensuring that the amount owed to get their home back after foreclosure is fair and properly calculated. This plan is just one more way to help keep Michigan families in their home."
Under current Michigan law, a homeowner has six months from the date their property was auctioned to redeem their mortgage. Since Michigan real estate law was changed in 2005, homeowners have been forced to contact the current holder of the mortgage in order to find out the amount owed to get their house back. Due to daily accrued interest and the fact that the current holder of the mortgage has a vested interest in keeping the property, the amount constantly changes. This process makes it difficult for homeowners to pay when they go to redeem their mortgage, which prolongs the process, sometimes indefinitely.
Under Miller's plan, a county register of deeds or county clerk will be allowed to calculate the amount needed for a homeowner to redeem their mortgage and then lock in that number.
In September, 37,026 homes in Michigan received some form of foreclosure filing. Macomb County ranked fourth in the state, with one out of every 208 homes in some stage of foreclosure, according to RealtyTrac.
"I commend Representative Miller's action on this plan to make it easier for people who are in foreclosure to save their homes, at no cost to the state," said Macomb County Clerk Carmella Sabaugh, a strong supporter of the plan. "Reinstating county registers of deeds' ability to calculate the amount homeowners owe will give them an honest chance to get their homes back."