July 5, 2009, a new Michigan law took effect designed to ensure homeowners a 90-day pre-foreclosure period in which to work with their lender to avoid foreclosure. (Act. No. 29, Public Acts of 2009, amends MCL 600.3204 and adds section 3205, and sections 3205a to 3205e.) The law requires the lender to notify you in writing of your rights under the new law. The lender must include very specific information in this notice. There is also a very specific process that both you and the lender must follow for the lender to be in compliance with the law and for you to take advantage of your rights under the new law.

The smartest thing you can do to make sure you take advantage of the new law is to:

1)   Open all your mail to make sure you don’t miss this very important written notice. The return address on the envelope containing the notice will probably not be your lender’s.  Most often these notices come from the law firm representing your lender so you may not recognize the name on the return address. The law firms in Michigan that are sending out most of these notices on behalf of lenders include:

• Schneiderman & Sherman
• Trott & Trott
• Orlans & Associates
• Potestivo & Associates

2)      Call your lender. The letter will provide you with the name and contact information for the individual who is designated by the lender to meet with you to try to avoid foreclosure. You have 14 days from the date the notice was mailed to do this. 

3)      As soon as you have called your lender, immediately Call a FREE HUD or MSHDA certified foreclosure counselor.  Make sure when you call a counselor that you let them know you have received this important notice.

FREE

HUD and MSHDA Certified Counselors

Jackson County

Community Action Agency (800) 491-0004

Jackson Affordable Housing (517) 788-4626

Lenawee County

Community Action Agency (800) 438-1845

Hillsdale County

Community Action Agency (800) 750-9300

Once you’ve contacted a housing counselor, you will have 90 days to work with your lender to work out an agreement on your loan. Part of the process of doing this will involve a meeting with the lender’s designated agent for the purpose of negotiating a modification to the loan. You can attend this meeting on your own or ask the foreclosure counselor to attend with you. Either way, there are several documents that you will need to provide the lender (or counselor) in advance of the meeting.  

There is no guarantee that you will be able to work something out with your lender to keep your home.  Even so, you still have options that can help you avoid foreclosure and its negative effects on your credit and your future.

If you think there were misrepresentations or fraud regarding your mortgage loan, contact OFIR 1-877-999-6442 (www.michigan.gov/ofir) or the statewide number for the FBI – (313) 965-2323. Locally, you can also call a FREE legal services attorney Legal Services of South Central Michigan:

Jackson and Hillsdale Counties

(800) 676-9488 or (517) 787-6111

Lenawee County

 (888) 251-1598 or (734) 241-8310

Community Action Agency
 (800) 491-0004

Jackson Affordable Housing
(517) 788-4626

Community Action Agency
 (800) 438-1845

Community Action Agency
(800) 750-9300