Governor Signs Birmingham Rep's Foreclosure, Mortgage Legislation

Gov. Rick Snyder has signed legislation providing financial relief to Michigan homeowners who were subjected to poor foreclosure processes and flawed servicing of mortgages, Birmingham resident and State Rep. Chuck Moss (R- Birmingham) announced today.

Public Act 296 of 2012, authored by Moss, provides $97 million in supplemental funds from a national mortgage settlement. The settlement found that five leading bank mortgage servicers routinely signed foreclosure related documents outside the presence of a notary public and without knowing if the facts contained in the documents were correct.

"We can now help right a wrong on Michigan homeowners and help restore the good name of the communities and citizens who were harmed by this fraud," said Moss. "The purpose is to help communities and people going forward, especially with the funding made available for foreclosure counseling and legal aid."

Moss said the $97 million is in addition to the money that was paid to individuals harmed. 

The supplemental funding allows for restitution to victims, provides counseling, assists military veterans, helps investigate and prosecute foreclosure-related crimes, and supports blight initiatives.

Residents who went through foreclosure with the participating banks from 2008-2011 may be eligible for cash payments. Current borrowers serviced by the banks may be eligible for loan modifications and other refinancing options.

—Courtesy of Rep. Chuck Moss's office