Mortgage Payoff Calculation Back at the County Clerk

Information by NOCBOR

Granholm Signs H.B. 5267-Legislation, which would put mortgage payoff calculation responsibilities back in the hands of the County Clerk for residents of two Southeast Michigan counties, was signed yesterday Governor Granholm’s signature.

H.B. 5267 gives homeowners in Oakland and Macomb counties, who are in the process of foreclosure, a chance to pull their homes out of the process, even if the property has already gone to the Sheriff’s department for a sale. The law was changed in 2005, giving the ability to calculate payoff amounts to banks.

There were problems with the 2005 change. Some of the lending institutions were charging homeowners’ fees for the payoff figures. In other cases, homeowners who were able to pay off the debt and pull their homes out of foreclosure were unable to get in touch with the institutions, missing the deadline and losing their homes. If signed by the Governor, the law will apply to counties with more than 500,000 residents and less than 1.5 million residents.

“The legislation won’t help everyone. Some people are still going to lose their homes, but there should be some set of checks and balances to keep people from falling victim to unscrupulous companies,” states Ruth Johnson, Oakland County Clerk/Register of Deeds, who will be sworn into office as Michigan’s Secretary of State on January 1, 2011.

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