Delinquent Mortgages Increase in Michigan

By: Brittany Dunn  In recent data released by Farmington Hills, Michigan-based GreenPath Debt Solutions, a nonprofit consumer credit counseling service, the company found there is an increasing amount of Michigan homeowners facing mortgage delinquency.
The number of Michigan residents with past due mortgages had trended upward throughout 2009. According to GreenPath, Michigan clients with past due mortgages soared 32 percent during the first 11 months of this year, compared to the same period in 2008.
“The increase is due, in part, to the adjustment in the Michigan foreclosure law that went into effect in early July,” said Kathy Conley, GreenPath housing counselor.
Conley explained that the law requires lenders to give delinquent homeowners a notice that includes a list of approved housing counselors. She said homeowners are now able to initiate a 90 day stay on a foreclosure by contacting a counselor for help. Counselors will then aid homeowners in working with a lender in an effort to save their home.
“Based on our findings, we also are projecting a 20 percent increase in clients with past due mortgages for the entire fourth quarter 2009, which is a sign that Michigan homeowners are still struggling in this trying economy,” Conley said.
With 25 offices across Michigan, GreenPath offers a variety of housing solutions to its clients including mortgage default and delinquency counseling, first-time homebuyer counseling, reverse mortgage counseling, and home equity loan counseling. Since 1961, the company has aimed to help people resolve financial problems and achieve goals through financial counseling, debt management, and education.