2011 House Bill 4542 ↩

Senate Roll Call 810: The amendment was not adopted

To give Michigan courts the power to impair residential mortgage contracts in favor of the borrower. Specifically, a court could order that the borrower could fail to repay up to 36 percent of the value of the loan and still keep the house. If the debtor then sold the house at a profit, the lender would only be entitled to one-half of the gain, with the delinquent borrower keeping the rest. Note: The amendment, and Senate Bill 860 upon which it is based, would appear to violate the state Constitution, article 1 section 10, prohibiting enactment of a law "impairing the obligation of contract".