Presque Isle County backs state bills to curb post-foreclosure predatory practices

The Presque Isle County Board of Commissioners unanimously adopted a resolution on Jan. 8 urging state lawmakers to pass Michigan House Bills 5152 and 5153, measures the board said would protect homeowners from predatory post-foreclosure schemes.

The resolution, introduced by the register of deeds, says certain third-party firms have targeted homeowners during foreclosure proceedings and convinced them to sell rights to surplus foreclosure proceeds or their statutory redemption rights for a fraction of their value. The resolution states House Bill 5153 would make a mortgagor’s right to surplus money and right of redemption nonassignable after a foreclosure notice is recorded, except through legitimate succession processes. House Bill 5152 would require mandatory notice of rights in any conveyance after a foreclosure notice is recorded.

“We want to protect the property rights of our residents and reduce the burden on local government resources,” the register of deeds said in presenting the draft resolution.

Commissioners moved and seconded the measure and the clerk conducted a roll-call vote. The board recorded affirmative votes from all commissioners present and declared the resolution adopted; the county will prepare an authorized, signed copy for transmission to state legislative leaders.

Why it matters: County officials said predatory conveyances after foreclosure can strip families of equity — sometimes tens of thousands of dollars — and that state-level changes are required because local offices lack authority to regulate such transactions. The resolution frames the bills as clarifying statutory protections and requiring clear notice so sellers understand they are waiving redemption or surplus proceeds rights.

Next steps: The county will provide a signed copy of the resolution to state officials and indicated county staff may follow up with legislators to explain local impacts if requested.