Officials to push end of law allowing foreclosure by advertisement

State and local officials held a press conference Wednesday morning to announce a push to eliminate Michigan’s foreclosure-by-advertisement law.

“The best way to help people stay in their homes is to make sure they can find and keep a good job, but just as important is ensuring a system that does not expose them to fraud and scams,” said Jim Ananich (D-Flint). “Reforming our system to require judicial review – as nearly half of the other states in the country already do – will help stabilize our housing market, protect our homeowners, and get our economy back on track.”

Currently, Michigan law allows a mortgage servicer or holder to begin foreclosure proceedings by running an advertisement announcing a sheriff sale. But as Michigan Messenger has documented over the past couple of month, those foreclosures could possibly be based on falsified documents.

Ingham County Register of Deeds Curtis Hertel Jr. has discovered hundreds of cases of robo-signing involving “Linda Green.” The name was the subject of a “60 Minutes” report which uncovered many people who were signing the name “Linda Green” on the documents. Since the discovery, Hertel has identified other robo-signed documents and referred them to Republican Attorney General Bill Schuette’s office.

The legislation (PDF), if passed by the Republican-controlled Legislature and signed by Gov. Rick Snyder, would shift foreclosures into circuit court on any property up to four units large and occupied by the owner. This, in turn, would allow courts to modify loans and address other issues in an attempt to keep the building owned and occupied.