Oakland County, Michigan, November 10, 2009 -- A bill that would allow the Oakland and Macomb County Registers of Deeds to help families in foreclosure was approved by the House Intergovernmental and Regional Affairs Committee today. House Bill 5267 now goes to the full House of Representatives for consideration.

The bill would restore the ability of Oakland, Macomb and Kent counties to calculate redemption or "pay-off" amounts for homeowners who have lost homes to foreclosure. Those homeowners have six months after the home goes to sheriff's auction to redeem it.

"Today's vote is the first step toward helping families in financial crisis," said Johnson. "I'm so pleased that the committee understood that these homeowners need help. We provided that information for years as a service without any problems."

Sabaugh was equally pleased, saying, "We're happy to get through this first hurdle and looking forward to the full House vote. This is a good team effort by both political parties to help families in foreclosure. House Bill 5267 was sponsored by State Rep. Fred Miller (D-Mount Clemens.) Similar legislation, Senate Bill 350, has been introduced in the state Senate by Sen. Nancy Cassis (R-Novi.)

County registers provided pay-offs amount until the law changed in 2005. Under the change, the responsibility for calculating redemption amounts was given to the investor who purchased the home at sheriff's sale, their bank or agent.

 "We have heard from families that it can be impossible to get that redemption amount and this is the last opportunity for someone to save their home," Johnson said. She said some of those institutions are charging homeowners as much as $350 to calculate the amount needed to save their homes - and this to families already in financial distress.

Oakland County is expecting as many as 8,500 home foreclosures this year. In some communities, as many as one in every 5.2 homes is in foreclosure.

"Not everybody will be able to redeem their home, but we feel strongly that every assistance should be given to those who need help to do that," Johnson said. "Unfortunately, this system is ripe for abuse because there are no checks and balances. Some families are easy prey for those without integrity or who are simply overwhelmed by the sheer volume of foreclosed homes. We believe that a neutral third party, the county Register of Deeds office, could assist these families and ensure that every family that has the opportunity to save their home."