“Senate Democrats have been fighting hard for years to help keep Michigan residents in their homes, and we are able to offer some relief with the passage of these bills today,” said Senate Democratic Leader Mike Prusi (D- Ishpeming). “Critical to homeowners looking for help were the important protections our caucus fought for that will require lenders to work with homeowners to reach a compromise and allow for legal intervention to make sure lenders are acting in the best interest of borrowers.”

Democrats strongly opposed previous changes made by Senate Republicans that removed the ability to force banks to negotiate with homeowners before foreclosing, and the compromise passed today includes an important judicial enforcement provision to hold lenders accountable that Democrats demanded. Elements of the foreclosure protection package passed today include:

• Home loans that qualify for modification will qualify for judicial intervention if the lender chooses not to cooperate to modify payments.

• Lenders will be required to send a notice of foreclosure to all homeowners. Currently, the lender has no obligation to notify the borrower.

• Borrowers may request a meeting within 14 days of receiving a foreclosure notice, and once a request is made, the lender agrees to stop any foreclosure proceedings for 90 days.

“This is a great example of what perseverance and determination on behalf of Michigan citizens can accomplish, as this package includes the judicial protections that we’ve been fighting for all along,” said Senator Tupac A. Hunter (D-Detroit), a member of the conference committee that worked out the compromise. “Senate Democrats will keep doing everything we can to turn our economy around, help Michigan families stay in their homes and create jobs.”