Measure advances unanimously in Senate
Legislation from state Rep. Ryan Berman addressing an issue with redemption on foreclosures was approved today in a vote by the Michigan Senate.
House Bill 4226 sets a fee limit that can be charged to original owners of foreclosed properties when assisting with calculating the amount needed to redeem the property.
Current law allows for a redemption period for a property sold at foreclosure during which a former owner may regain ownership. This is done by paying a fee to the person who bought the property at a foreclosure sale. That total takes into account the entire amount of the original sale, mortgage interest accrued since the sale, assessments of liens, existing back taxes and other miscellaneous fees.
A third party can be hired to calculate the fee with the exclusive ability to set fees for the service.
“Many people looking to regain ownership and get back into their homes are already dealing with financial hardship,” said Berman, of Commerce Township. “We should be reigning in what can be charged, because right now it can be any amount and that amount has to be paid for the process of re-attaining the property to continue.”
Berman’s plan sets an upfront limit of $250 for the assistance fee. HB 4226 now moves to the governor for review.