Michigan Lawmakers Request Suspension Of Foreclosures

The latest foreclosure issue to hit the country has prompted lawmakers in Michigan to call for the temporary suspension of bank repossessions and evictions. Currently, erroneous foreclosure paperwork has forced many lenders to halt foreclosure proceedings in 23 states, but Michigan has not been included in this list.

"Since Michigan homeowners don't even have the benefit of judicial review before losing their home, it is critical that immediate action be taken to protect our citizens from having their homes taken based on potentially fraudulent actions by Wall Street banks," said Virg Bernero, Democratic nominee for state governor.

State lawmakers say it makes little sense to only halt foreclosures in some states, because faulty paperwork may exist in other areas in which lenders operate. However, critics say that suspending foreclosures could negatively impact credit availability, making it harder for prospective homebuyers to secure loans.

Despite a multitude of mortgage debt relief programs, millions of homeowners are facing foreclosure. Estimates from RealtyTrac show U.S. foreclosure filings - including bank repossessions, schedule auctions and default notices - are on pace to surpass 3 million by the end of 2010.