The governor of Michigan will be signing to put through new legislation that will allow struggling homeowners facing foreclosure extra time to work something out with their lenders. Governor Jennifer Granholm is expected to sign the legislation and once this goes into play it will take another 45 days before homeowners will be able to use the plan.

The borrower will be required to meet with their lender and a housing counselor. If the homeowner meets the qualifications and the lender still refuses to work out a plan with the borrower then they must go to court. They must explain to the court why they didn’t want to work out a plan with the borrower who was qualified for the program and to continue with the foreclosure process.

The legislation will give the homeowner another 90 days to work out a plan with their lender. Their loans may be modified or a repayment plan may be developed. With a housing counselor present it may help encourage lenders to develop an agreement that the borrower will also agree to that will end up keeping the homeowner in their home. This program will only be available for Michigan homeowners and if they are unable to maintain their payments then they will end up in foreclosure with no further help.