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State Legislators Urged to Pass Bill for Homeowners’ Protection from Foreclosures
December 10th, 2008 by 
Joseph Smith
Predatory practices in home loans and mortgages have lured thousands of hapless residents in Michigan, which eventually resulted to foreclosures, with families forcibly thrown out of their homes without any protection or second chances. An experience like this would not only devastate a family and put them into a lot of stress, but the implications of foreclosures would put entire communities in jeopardy and adversely affect the economy of an entire nation.
The repercussions of foreclosures are not only destructive for the family involved, but could also affect the entire neighborhood and communities in terms of the devaluation of property values which could eventually destroy the economy of the state and its local governments.
To address this issue, the Michigan state Congress has passed into legislation the Michigan Home Loan Protection Act in a bid to control and address the crisis on foreclosures. These bills are very significant in providing protection for families against predatory lenders. However, the bill could not take flight as the state Senate continued their bickering and politicking while the bill awaited their immediate action.
The Michigan Home Loan Protection Act aims to reverse the uptrend of foreclosed properties in the state by banning predatory lending practices that were designed to encourage borrowers to default. These loans were awarded to individuals or families without undergoing an income capability check. These loans also charge exorbitant late payment fees. Predatory lending also involve unscrupulous agents that would steer consumers to take on high cost mortgage loans when they could qualify for traditional loans.
Other items in the bill would provide protection for homeowners against unlawful penalties and fees related to the loan, as well as a protection for the homeowner’s equity against refinancing that will not benefit the borrower. The bill will also protect physically and medically challenged homeowners from foreclosures.
Having one of the highest foreclosure rates in the country, the people of Michigan should not wait for a federal rescue plan but should take immediate action on their own and deal with foreclosures.
