Lansing, MI – The state Senate is expected to vote this week on legislation to help homeowners struggling to make their mortgage payments. Governor Granholm says she's anxious to sign it.
Michigan had the nation's sixth-highest foreclosure rate in the first quarter of 2009, and reported roughly 11 thousand foreclosure filings last month.
The legislation is the product of a bipartisan compromise, and Governor Granholm says it's desperately needed. In her weekly radio address, she said that fewer than 20% of people in default communicate with their lender or a counselor soon enough to mitigate the situation.
The state House approved the legislation last week. It would give homeowners facing foreclosure a 90-day window to sit down with a credit counselor and their lender to work out a new arrangement. It might include lower interest rates, or reducing payments by spreading out the length of the loan.