LANSING – Continuing efforts to increase consumer protections and combat the foreclosure epidemic in Michigan, House Democrats today passed a plan sponsored by State Representative Shanelle Jackson (D-Detroit) that will require landlords to give renters at least 30 days notice if the owner of the rental property receives a foreclosure notice. Currently, Michigan has no requirement for landlords to inform tenants that their property is in foreclosure.
"It is an absolute travesty that renters do not have even this basic level of protection," Jackson said. "A renter can pay their rent on time every month and within days, find themselves, their possessions and their family out on the street. It is unconscionable that this is happening in Michigan, and it must end."
Under the Jackson's plan, all rental agreements in Michigan would contain a provision requiring landlords to inform tenants at least 30 days before the property is foreclosed on. This problem was highlighted last July in Grand Rapids, where the owner of an apartment complex received notice in January that his property was being foreclosed upon, and failed to notify his tenants until July 7 – nine days before they were forced to vacate their homes. Under the plan, landlords would also be required to notify tenants in writing within 10 days of becoming 90 days late on the property's mortgage payment. The plan now heads to the Senate.
This plan is part of Jackson's continued fight to protect Detroit homeowners and renters from the foreclosure epidemic that has plagued Michigan. Previously, House Democrats passed the Michigan Home Loan Protection Act, which bans predatory lending practices, and the "Save the Dream" plan, which established a series of programs to help homeowners stuck in risky adjustable-rate mortgages to refinance and secure a safer, more stable fixed-rate loan.
"We need to protect Detroiters and make sure they aren't left out in the cold when they lose their homes through no fault of their own," Jackson said. "At a time when families are worried about whether next month's paycheck will pay for next month's rent, it can be extremely challenging to drop everything and find a new home on short notice. These protections will ensure our residents are no longer taken by surprise and help cut down the stress of finding a new home."