Introduced by Sen. Bert Johnson D-Highland Park on December 1, 2011
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 bill would appear to violate the state Constitution, article 1 section 10, prohibiting enactment of a law "impairing the obligation of contract". Official Text and Analysis.
Referred to the Senate Banking and Financial Institutions Committee on December 1, 2011