The Financial Crisis Talk Center urges you to take the steps listed below to help STOP this deplorable action. There is no justification or rationale to Mr. Olson’s bill. His action represents a callous disregard of a problem that has reached epidemic proportions. Beyond that – why would we shorten the 6 month redemption period that has been the law of the State of Michigan for the last 50 years? What on earth happened to the concept of our legislature doing something designed to help its constituency? Is the banking industry the new constituency? If so, where does that leave the residents of the State of Michigan? I urge you to read the below post from Michigan Forward and make the calls and pass the word. Bottom line – if we remain quiet – the train will run us over. — Ken Gross on Thanksgiving Day – 11/24/11
House Rep. Olson Brings Unfair Foreclosure Reforms to Committee
Michigan State House Representative Rick Olson (R) from Saline has introduced more unfair housing policy before Michigan’s homeowners. Olson’s HB 5176 reduces the 6-month redemption period to 3 months. As anticipated this legislation is designed for loans where the “original mortgagee has never assigned the mortgage or the indebtedness secured by the mortgage and has not transferred the power to service the mortgage.” We expect this bill to be taken up at a meeting of the Housing Banking &Financial Services Committee on either November 30th or December 7th.
The Michigan Foreclosure Task Force anticipated this action in a previous post. This administrative nightmare for Michigan’s housing industry and homeowners. MFTF opposes the changes made to Michigan’s foreclosure redemption period by HB 5176. HB 5176 presents a fundamental unfairness to homeowners who don’t know whether or not their loan meets the above criteria and more importantly have no choice in the matter. This bill will further delay the loan modification process Michigan homeowners rely on to preserve their homes. HB 5176 creates a paper log jam for the big lending institutions that hold approximately 90% of Michigan mortgages.
Michigan Forward is asking your help in gaining public support for our position which will require all of us to act quickly!
Please immediately, call or email the following House Banking Committee Members:
Rep. James Womack –(517)373-0589 –JimmyWomack@house.mi.gov
Rep. Paul Clemente –(517) 373-0410 –PaulClemente@house.mi.gov
Rep. Jon Switalski –(517) 373-1772 –JonSwitalski@house.mi.gov
Rep. Woodrow Stanley –(517) 373-8808 –WoodrowStanley@house.mi.gov
Rep. Rick Olson –(517) 373-1792 –RickOlson@house.mi.gov
When you call these State Representatives give them this clear message:
- Shortening the 6-month redemption period on any residential mortgage is bad news not only for Michigan’s at-risk homeowners but for all of us in terms of reducing our property values,increasing the number of vacant properties,eroding the local tax base that pays for basic services and further slowing the housing market and our overall economic recovery.
- Specific to HB 5176,shortening the redemption period on loans as defined in the bill is fundamentally unfair to homeowners who don’t know whether or not their loan meets the criteria and more importantly have no choice in the matter.