Andrews Celebrates Passage of Bipartisan Bills Designed to Help Homeowners Facing Foreclosure

LANSING, Mich., July 2, 2026 — This week, the Michigan House passed House Bills 5152 and 5153, bipartisan legislation that seeks to protect vulnerable homeowners facing mortgage foreclosure by strengthening protections, improving transparency, and reducing unscrupulous practices that exploit the foreclosure process.

The bills respond to a practice in which predatory buyers target homeowners after a foreclosure notice has been recorded but before the sheriff’s sale. Although a homeowner still owns the property during that period, some companies use high-pressure tactics to persuade them to sign quitclaim deeds for a fraction of their home’s value, often without realizing they are giving up valuable rights, including the right to redeem their home, remain in the home during the redemption period and claim any surplus proceeds from a foreclosure sale.

House Bills 5152 and 5153 address these concerns by establishing a seven-day cooling-off period before certain transactions can occur, requiring clear written disclosures about homeowners’ rights and estimated equity, and preventing the transfer of redemption rights and surplus proceeds after a foreclosure notice is recorded.

After the passage of the bills, state Rep. Joey Andrews (D-St. Joseph), who introduced HB 5153, released the following statement:

“This bill package addresses a form of fraud that has plagued Michigan for a long time but has been particularly aggressive in my community of Berrien County. People facing foreclosure are already going through one of the most difficult times in their lives, and predatory companies are taking advantage of that hardship. Through high-pressure tactics, they convince people to sign away their redemption rights or even their homes altogether without realizing they have other options. This practice has resulted in seniors and economically disadvantaged families losing their homes to companies that have no intention of helping them.

“These bills close the loopholes that allow bad actors to target vulnerable homeowners in the days leading up to a foreclosure sale. They give families time to understand their rights before signing anything, require clear disclosures about what they stand to lose and stop predatory companies from buying redemption rights and surplus proceeds for pennies on the dollar. These reforms will not stop legitimate efforts to help homeowners avoid foreclosure, but they will make it much harder for scammers to profit from someone else’s hardship and help ensure families can make informed decisions instead of being pressured into giving away one of their most valuable assets.”

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