LANSING – Continuing her efforts to increase consumer protections and combat the foreclosure epidemic in Michigan, State Representative Kate Ebli (D-Monroe) today voted to pass a plan that will require landlords to give renters at least 30 days notice if the owner of their rental property receives a foreclosure notice. Currently, Michigan has no requirement for landlords to inform tenants that their property is in foreclosure.
"It is incredibly tragic that our working families can pay their rent on time each month, and then find themselves homeless in a matter of days through no fault of their own," Ebli said. "Renters should not have to pay the price for their landlord's failure to pay. This is a common-sense plan that will give our residents a simple, but necessary protection."
Under the 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 a continuation of Ebli's fight to protect homeowners and renters from the foreclosure epidemic that has plagued Michigan. Previously, Ebli helped pass 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.
"When our working families are scraping to make ends meet and pay their rent on time, it's unfair for them to be caught by surprise and lose their home," Ebli said. "These protections will help our residents get a fresh start and cut down on the stress of finding a new home."