LANSING – House Democratic Leader Tim Greimel(D-Auburn Hills) and Rep. Collene Lamonte (D-Montague) denounced Senate Bill 383, which was passed by the House today, because it subjects families facing foreclosure to burdensome inspections of their home during the six-month redemption period in which homeowners work with a bank to keep their home. If inspection turns up the need for a repair, the bank or individual that hopes to take ownership following foreclosure can press for an eviction before the end of the redemption period.
“This bill puts financially strapped families at a further disadvantage as they try to hammer out a plan with their bank to keep their homes,” Greimel said. “Families need those six months to try to save their homes or make plans of where to move next. There’s no reason to cut that time short other than greed, and we should be protecting our families against that.”
The bill puts few restrictions on the inspections. There are no limits as to the number of times a home may be inspected or when they can be inspected. Inspections can occur without any notice. The bill lists kinds of damage that would allow a bank to accelerate eviction proceedings, but the terms are often vague. Families with homes that have “accumulated debris” or “a boarded up or closed off window” could find themselves facing a court hearing for eviction.
“Losing a home to foreclosure is heartbreaking and immensely stressful,” said Lamonte, whose family has been through the process. “Families in that situation don’t need to be shoved out the door faster; they need help resolving problems with their bank or finding a new place to live. Rather than making it easier for banks to take over homes, we should be creating solutions that will help keep more families in them.”