MI HB4542

Requires mortgage holders or servicers to designate a specific individual, department, or unit to serve as a contact for foreclosure negotiations and loan modification discussions with borrowers.

Prohibits foreclosure proceedings on principal residences from commencing until the mortgage holder provides required notice, allows time for borrower requests to meet, completes negotiation meetings, and considers borrower eligibility for loan modifications.

Establishes liability for mortgagors during the redemption period following foreclosure sale for physical damage to the property beyond normal wear and tear caused by the mortgagor or persons liable on the mortgage.

Requires foreclosure notices to include statement informing borrowers they will be held responsible for damaging the property during the redemption period if the property is sold at foreclosure.

Applies to foreclosure proceedings where first notice is mailed on or after February 1, 2012, with an exception for agricultural mortgages subject to federal farm credit restructuring requirements.