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"In this tough economy, any one of us could lose our job or face a catastrophic illness and be unable to keep up with our mortgage payments. Thanks to this plan, families who fall behind will now have the time they need to sit down with their lenders and housing counselors. I encourage struggling homeowners to take advantage of this opportunity, and hopefully work out a solution to stay in their homes." Jon M. Switalski State Representative |
Switalski, Haase: New Foreclosure Lifeline Starts Sunday
House plan signed in May will keep Michigan families in their homes
— July 02, 2009
Help for struggling homeowners is here!
A new state law that takes effect July 5 provides a 90-day lifeline to families in danger of losing their home. Under the new law, lenders must work with you to avoid foreclosure.
Here's what you need to do.
First, open all mail from your lender. If you're behind on your payments in this tough economy and are at risk of foreclosure, you will receive a notice in the mail explaining your right to work with both your lender and a certified housing counselor.
Second, call a housing counselor immediately. You have 14 days from the date the notice was mailed to contact a housing counselor or your local legal aid office.
Make sure your housing counselor is certified! Contact a housing counselor through any of these non-profit agencies:
- The Michigan State Housing Development Authority's Save the Dream Program: (866) 946-7432, or visit www.michigan.gov/MSHDA
- The U.S. Department of Housing and Urban Development: (800) 569-4287, or visit www.hud.gov
- HOPE Hotline: (888) 995-HOPE
- United Way: 2-1-1
- Michigan Foreclosure Prevention Project: www.miforeclosure.mplp.org
Third, start working with your lender and housing counselor to come to a solution. You have 90 days from the date you contacted your housing counselor to come to an agreement with your lender about your loan.
Foreclosures tear apart families, neighborhoods and communities. Let's put an end to the housing crisis and stop the foreclosure epidemic once and for all.
Beware of scams!
Unscrupulous thieves and con artists frequently try to prey on homeowners who are trying to avoid foreclosure. Be on the lookout for these common scams:
- "Foreclosure Prevention Specialists" who ask for large fees to negotiate with your lender in order to save your home. You do not need to pay someone to speak to your lender on your behalf. If a housing counselor asks for payment, simply find another housing counselor.
- The "lease/buy back," where homeowners are tricked into signing over the deed to their home based on a promise that they'll be able to remain in the home as a renter and buy the home back later. These terms end up being so difficult to meet that the homeowners aren't able to repurchase their homes. Do not sign over the deed to your home.
- The "bait and switch," where homeowners are tricked into signing over the deed to their homes when scammers convince them that they're entering into a new mortgage agreement. Read everything carefully before you sign it.
If you have any questions about these scams or concerns about your housing counselor, feel free to contact MSHDA at (866) 946-7432, or on the Web at www.michigan.gov/MSHDA.