County clerks' hard work pays off-- Legislation to help vulnerable families in foreclosure heads to governor

It took years, but legislation that will allow the Oakland and Macomb County Register of Deeds Offices to once again help families in foreclosure save their homes has finally passed the Legislature and is headed to the governor's office. House Bill 5267 - a combination of legislation sponsored by both Rep. Fred Miller (D-Mount Clemens) and Sen. Nancy Cassis (R-Novi) - was approved late last Friday and now heads to the governor's office for signing. The new law makes it easier for some homeowners in foreclosure to save their homes. It restores the ability of Register of Deeds Offices in both counties only to calculate redemption or "pay-off" amounts for homeowners, who have six months to redeem their homes even after the property goes to sheriff's sale. For Johnson, who is leaving her position as Oakland County Clerk to become Michigan's next Secretary of State on Jan. 1, the passage was particular poignant. Both she and Sabaugh had worked tirelessly on this bipartisan effort, pushing for reform, campaigning for public support and testifying before legislative committees. "This was a matter of common decency, which is why we fought so hard and for so long to get this passed," said Johnson. "We have to do everything we can to help families in foreclosure. This new law will untie our hands and allow us to give families the information they need to save their homes." "This new law lets us put information directly into the hands of homeowners and provides some hope in what can feel like a hopeless situation," said Sabaugh. "Homeowners have Oakland County Clerk Ruth Johnson to thank because this bill would not have passed without her persistence." For decades, the Register of Deeds offices in both Oakland and Macomb counties successfully provided redemption amounts to homeowners hoping to save their home during the six-month redemption period after the home goes to sheriff's sale. The law, however, was changed in 2005. Under the change, the responsibility for calculating redemption amounts was given to banks, the investor or their agent. The change had unintended consequences. Some institutions were charging homeowners, already in financial crisis, as much as $350 to calculate redemption amounts - a calculation that literally requires just minutes to compute. Other homeowners able to scrape up enough money to redeem their homes reported they were unable to contact the investor, bank or financial agent. Telephone calls and e-mails were being ignored, thereby preventing the homeowner from saving their home. A Waterford couple in December 2009 testified before a legislative committee that a mortgage company told them it would take two months to provide a redemption amount. After numerous phone calls, faxes and advice from an attorney, they finally received the information and were able to save their home. "We had to fight to get the information we needed to save our home," said the homeowner, who had been injured in a car crash and could not work. "We were persistent. We didn't give up. But there are so many people that could be cheated out of the very last opportunity they have to save their home. The stress in this situation is enough to scatter a united, loving family in all directions." Oakland County had 9,242 home foreclosures in 2008, nearly 8,500 in 2009 and has already seen 8,745 foreclosures this year. Macomb County saw 6,723 home foreclosures in 2008, 5,974 foreclosures in 2009 and has seen 7,134 foreclosures this year. "Not everybody will be able to redeem their home, but we feel strongly that we need to provide every assistance in getting them the information they need to save their house," Johnson said. "Unfortunately, this system is ripe for abuse because there are no checks and balances. Some families are easy prey for those without integrity or who are simply overwhelmed by the sheer volume of foreclosed homes. We believe that a neutral third party, the county Register of Deeds office, can and should provide the information they need to save their homes." Published: Wed, Dec 8, 2010

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