LANSING, Mich. (AP) — Legislation to rewrite or clarify recent changes in Michigan’s foreclosure rules has taken a step forward.
The bill approved 107-3 by the House last week retains main elements of a law signed last summer by Gov. Rick Snyder, including taking away someone’s right to save his or her property if an inspector discovers the home’s in bad shape due to neglect or other reasons. It is sponsored by Rep. Mike Callton, R-Nashville.
But the legislation going to the Senate imposes more restrictions on inspections, provides more notice to borrowers before inspections and gives them more chances to fix damage.
When he signed the 2013 law, Snyder called on lawmakers to clarify some issues involving inspections.
“With certain exceptions, the purchaser could not enter any structure to inspect the interior more often than once per calendar month and not more often than three times in any six months of the redemption period,” House Fiscal Agency analyst Chris Couch wrote in a Feb. 7 summary of the bill. “The purchaser would have to give the … borrower … at least 72 hours’ notice before an inspection of the interior and conduct the inspection at a reasonable time of day as prearranged with the borrower.”
Under the bill, “if an inspection in unreasonably refused or if damage is imminent or has occurred, the purchaser could immediately begin summary proceedings for possession of the property or file an action for any other relief necessary to protect the property from damage,” the summary said.
The bill also would bar the purchaser from begin summary proceedings if “the damage or condition is repaired or corrected within the seven-day period or … the mortgagor and purchaser agree on procedures and a timeline to repair the damage or correct the condition and the procedures are completed by the original date agreed to or by an agreed-upon extended date,” the summary said.