Lansing, Michigan, Thursday, November 13, 2008 -- Ruth Johnson, the Oakland County Clerk/Register of Deeds and Carmella Sabaugh, the Macomb County Clerk/Register of Deeds, testified today before the Michigan Senate Banking Committee in favor of a bill that will help families save their homes from foreclosure.

Committee members voted in favor of Senate Bill 1390, which now goes to the state Senate. The proposed legislation restores the ability of county registers to calculate the amount of money needed to redeem a foreclosed home and provide that calculation to the homeowner. County registers were allowed to provide that information until the law was changed in 2005.

Most homeowners who lose their homes to foreclosure have six months - even after the home has been sold at sheriff's sale - to redeem their home. Unfortunately, some owners able to scrape up enough money to redeem their homes during that period are having difficulty obtaining the amount owed to the investor who purchased the home.

"This is a victory for families in financial crisis," Johnson said. "We weren't asking for a bail-out, a tax increase or any money - just the ability to perform a simple calculation that will help families save their homes. Homeowners who need answers shouldn't have to rely on an investor or institution with a financial stake in the situation. As a governmental unit - we are neutral and want to provide this service."

"Until 2005, clerks all over the state were allowed to provide the redemption amount," said Sabaugh, who has been Macomb County's clerk since 1992. "This will help families in Macomb County and we appreciate Ruth Johnson's efforts on this legislation."

Some investors and other lending institutions are charging those homeowners as much as $200 to provide the amount, which takes just minutes to calculate. Sabaugh said she believes the calculation can be provided online.

"These families are already in financial crisis," Johnson said.  "We believe we can provide this service for a reasonable fee, up to $50, to cover our staff time and expenses."

It is important, Johnson said, that the law include immunity for the county registers as well as a grace period to allow any discrepancies to be remedied without financial penalty to both the investor and the homeowner.

Johnson, a Republican, thanked Sabaugh for her support and her bipartisan effort, critical given Michigan's economic struggles. Johnson worked with Sen. Nancy Cassis (R-Novi) to introduce the bill in the state Senate. Sabaugh, a Democrat, is working with Rep. Fred Miller (D-Mount Clemens) on this issue in the state House.

"Owning a home is part of the American Dream," Johnson said.  "The Senate Banking Committee showed great resolve today on an issue that will help keep families in their homes."

Oakland County is expecting as many as 10,000 foreclosures this year alone. Macomb County is expected to see more than 6,000 foreclosures this year.