MI SB0398

Extends the sunset date for mortgage loan modification negotiation requirements from January 5, 2012 to the future, allowing continuation of protections requiring lenders to negotiate with borrowers before foreclosure.

Maintains restrictions on foreclosure proceedings that require lenders to provide notice to mortgagors and allow time for housing counselor involvement and borrower-requested meetings under section 3205a-3205d.

Applies the negotiation requirements only to foreclosure proceedings where the first notice is published after July 5, 2009 and before January 5, 2012.

Requires parties foreclosing mortgages to demonstrate either ownership of the debt, interest in the debt, or servicing agent status, and to maintain a record chain of title showing proper assignment.

Repeals sections 3205a through 3205d effective January 5, 2012, with the act taking immediate effect upon governor approval on July 1, 2011.