MI SB0860

Allows owners of mortgaged residential property to bring an action in circuit court requesting reformation of the mortgage and related debt documents.

Entitles property owners to relief if the amount owed on the mortgage exceeds the fair market value of the property.

Requires courts to reduce the indebtedness to whichever is greater: 64% of the unpaid principal or the property's fair market value, with burden of proof on the mortgage holder to show fair market value exceeds 64% of principal.

Adjusts the payment schedule of reduced indebtedness to amortize over the remaining amortization period and requires equal division of any equity proceeds if the property is sold, capped at the amount of indebtedness reduction.

Limits actions to be brought within 9 months after the effective date and applies only to principal residences exempt from property tax.