The Berrien County Board of Commissioners will consider a resolution next week expressing its support for legislation intended to protect the rights of property owners facing mortgage foreclosure in Michigan.
County corporate counsel Thaddeus Hackworth told commissioners this week that when a homeowner is facing mortgage foreclosure, they have the right to any surplus funds generated by a foreclosure auction. However, others try to take advantage of them.
“There are firms who do business which includes getting homeowners to sign over the rights to those surplus proceeds,” Hackworth said. “The bill would make that illegal.”
Hackworth said a homeowner also has a right to continue occupying a foreclosed property, even after it’s been sent to auction. The legislation seeks to preserve that right.
“That right of the homeowners would also not be transferable to a third party. So a firm couldn’t come in and say, I want to buy the right to redeem your property. I’ll give you a few hundred dollars in exchange for that right. That would no longer be permissible under the law.”
The legislation would also require that homeowners facing foreclosure be provided notice of their rights prior to any sale of the property to anyone else, including companies seeking to buy it. Hackworth said this gives the homeowners more time to pay off their bill and retain the property.
The legislation has the backing of both Democratic state Representative Joey Andrews and Republican state Representative Brad Paquette. The county board of commissioners will consider its resolution of support next week.
