Michigan Enacts New Anti-Foreclosure Bill

New efforts to fight foreclosure in Michigan have led state governor Granholm to sign into action a bill aimed at helping owners of distressed properties hang on to their homes. Michigan, especially the metro Detroit area, has been in foreclosure trouble for quite a while now, and the new bill is aimed at slowing the trend before problems get too much worse.

Michigan is currently ranked 6th in the nation among state’s with the most foreclosures, with roughly 11,000 properties currently on the foreclosure market.

In order to aid homeowners in danger of a foreclosure due to being too far behind on their mortgage payments, the state will no offer taxable bonds to homeowners that they can use to pay off their debts. The bill also outlines a plan to help move homeowners locked into dangerous, high priced adjustable rate mortgages toward refinancing under a more predictable 30-year, fixed rate mortgage. To qualify, a household must earn less than $109,000 per year total.

This move should work to help defaults from turning into more foreclosures, but does little to solve the problems foreclosures have already caused on the local markets, such as creating extremely low property values and the widespread presence of abandoned homes dragging down the quality of neighborhoods.

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