Bill Text: MI SB0382 | 2013-2014 | 97th Legislature | Engrossed

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Bill Title: Civil procedure; foreclosure; federal loss mitigation procedures; require lenders to comply. Amends 1961 PA 236 (MCL 600.101 - 600.9947) by adding sec. 3206. TIE BAR WITH: HB 4764'13, HB 4765'13, HB 4767'13, SB 0380'13, SB 0381'13, SB 0383'13

Spectrum: Partisan Bill (Republican 3-0)

Status: (Engrossed - Dead) 2013-06-11 - Referred To Committee On Financial Services [SB0382 Detail]

Download: Michigan-2013-SB0382-Engrossed.html

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SB-0382, As Passed Senate, June 11, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 382

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

(MCL 600.101 to 600.9947) by adding section 3206.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3206. (1) This section applies to a foreclosure

 

proceeding under this chapter of a mortgage of property used as a

 

primary residence to which both of the following apply:

 

     (a) The first notice under section 3208 is mailed to the

 

mortgagor after January 9, 2014.

 

     (b) The party foreclosing the mortgage is a defendant that

 

entered into a consent judgment in United States of America, et al.

 

v Bank of America Corp., et al., civil action no. 12-0361 in the

 

United States district court for the District of Columbia or a

 

successor in interest to such a defendant.

 

     (2) In a foreclosure proceeding to which this section applies,

 

the person foreclosing the mortgage shall do all of the following:

 

     (a) Designate an individual who is an employee or agent of the

 

person or of another entity that is an agent of the person or

 

designate a specific department or unit of the person or of an

 

entity that is an agent of the person to serve as a contact under

 

this section.

 

     (b) Authorize the individual designated under subdivision (a)

 

or, if the designee is a department or unit, a representative of

 

the department or unit to facilitate negotiations and attend

 

meetings with the mortgagor.

 

     (c) Include in the written notice the person sends to the

 

mortgagor under 12 CFR 1024.39(b), or enclose with the notice a

 

separate written notice that contains, all of the following

 

information:

 

     (i) The name and address and a dedicated telephone number and

 

dedicated electronic mail address of the individual, department, or

 

unit designated under subdivision (a).

 

     (ii) A statement that the mortgagor may, within 30 days, either

 

by contacting the individual, department, or unit designated under

 

subdivision (a) directly or by contacting a homeownership counselor

 

or counseling organization from a list referred to in the written

 

notice under 12 CFR 1024.39(b), request a meeting with the

 

individual, department, or unit designated under subdivision (a) to

 

attempt to work out a modification of the mortgage loan to avoid

 

foreclosure.

Senate Bill No. 382 as amended June 11, 2013

 

     (d) If the mortgagor requests a meeting under subdivision (c),

 

not commence foreclosure proceedings under this chapter unless the

 

meeting has been held. This subdivision does not apply if the

 

mortgagor has not cooperated by scheduling a meeting at a time and

 

place that is convenient to all parties, or in the county where the

 

property is situated, or has not attended a scheduled meeting.

 

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