MI SB0573

Requires foreclosing parties to participate in the Help for Hardest Hit Program administered by the Michigan State Housing Development Authority before proceeding with mortgage foreclosure by advertisement.

Mandates that mortgage holders send written notice to borrowers on properties claimed as principal residences at least 90 days before foreclosure, including information about modification options and housing counselor resources.

Establishes loan modification eligibility criteria targeting a housing-debt-to-income ratio of 38% or less, achievable through interest rate reductions (minimum 3% floor), extended amortization periods (up to 40 years), principal deferral (up to 20%), or fee reduction.

Prohibits foreclosure by advertisement if the borrower qualifies for loan modification under the established criteria, unless specific conditions are met including a good-faith modification offer and borrower non-acceptance within 14 days.

Applies only to foreclosure proceedings with first notice published between July 5, 2009 and July 5, 2011, allowing borrowers to file circuit court actions to convert improper advertisement foreclosures to judicial proceedings.