Avoid or Stop a Michigan Foreclosure
Facing or experiencing a home foreclosure can be all-consuming. Don’t go through it alone; our firm of caring professionals is here to help you each step of the way. If you want to legally stop the foreclosure sale, we can do that – including offering same day protection. If it is no longer feasible to maintain the home and mortgage and you want to minimize the credit damage and ensure that you will never get further collection demands from the mortgage(s) company, we can do that too.
For over a decade, Acclaim Legal Services has been helping Michigan residents prevent foreclosure and resolve debts. With convenient office locations in Detroit, Ann Arbor, Dearborn, Southfield, Flint or Warren, Michigan we offer free consultations to:
- Review your finances and provide a comprehensive evaluation
- Discuss your questions and concerns
- Explore all of your available options to stop your foreclosure
- Provide a recommendation to best resolve your current circumstances and meet your long-term goals
Call us today at 866-261-8282 to speak with a licensed attorney about your foreclosure matter.
Stopping Foreclosure in Michigan
The Chapter 13 reorganization plan is the only legal means to stop your home foreclosure without voluntary bank cooperation or another legal basis to object to the mortgage against your property.
By filing Chapter 13, you have instant court protection for your home and a protective shield from all of your creditors to allow you time to rebalance your budget, reduce your debts and recover your credit. We provide same day foreclosure protection if necessary and can file your case with the court directly from our office to provide immediate proof and peace of mind that you have stopped the foreclosure sale.
Time is of the essence to stop a foreclosure. You have up until the hour of the Sherriff’s sale or Judicial Foreclosure to file the Chapter 13 and receive legal protection. After a foreclosure sale, the power shifts entirely to the bank. Don’t be fooled if the bank is working with you on a loan modification; they can and very possibly will still foreclosure on your home. This may seem counter-intuitive, but many loans are FHA-backed, meaning that once the bank forecloses they apply to the government for reimbursement of unpaid balances (you may then be obligated to the FHA for whatever they have paid out). For many banks, a foreclosure is less risky than trying to work out terms with a willing homeowner.
Take control of your finances by filing for Chapter 13 protection. You can still pursue a loan modification through the program as well as other means to reduce your mortgage debt, such as:
- Ability to remove a second mortgage or home equity loan to rebalance your home’s value relative to current market conditions.
- The Chapter 13 program can also deal with increased mortgage payments due to an escrow deficiency for back taxes or homeowners insurance. We can reduce the payment back to the regular amount and deal with the escrow deficiency through an extended payment plan at 0% interest.
- All mortgage arrearages are paid back at 0% interest with no continued late penalties from the mortgage company.
- The plan allows you to reduce the principal mortgage balance for rental properties to current market value. Under the program, you will own the property free and clear at the completion of the 3 – 5 year program.
Other Chapter 13 Program Benefits
The Chapter 13 plan is a comprehensive debt consolidation program that allows you to get back on track with all of your finances, not just your mortgage. In addition to these mortgage reduction tactics, we can restructure other items in your budget, such as:
- Modify your vehicle loan payment to reduce your interest rate and lower your payment. If you have owned your vehicle for over 2.5 years you can “cram down” or reduce the principal balance owed on the vehicle to the vehicles current fair market value.
- Bind unsecured creditors to 0% interest and likely eliminate a portion, if not the majority, of the debt at the completion of the program with a court discharge.
In addition to reducing your budget and putting an immediate stop to your foreclosure, the Chapter 13 plan provides broad legal protection while you are in the program.
- Filing a Chapter 13 plan will stop vehicle repossession or allow you to get your vehicle back before it is sold at auction;
- Immediately halt a garnishment;
- Stop a judgment;
- Put an end to harassing phone calls and collection letters.
Reduce Your Debts, Improve Your Credit
The Chapter 13 plan only requires that you pay your “best efforts” towards your unsecured creditors, such as:
- Credit Cards
- Medical Bills
- Personal Loans
- Old Utility Bills
- Second Mortgage or Home Equity Loan
- Loan Deficiency Debt, etc.
They only receive whatever monies are “left over” in your budget after you have paid your primary bills such as mortgage and vehicle payments, perhaps IRS tax debt and your living expenses. This may be mere pennies on every dollar that you owe them. In addition, all unsecured debts are paid back at 0% interest and there are no more late reports to the credit agencies. The majority of our clients find significant unsecured debt reduction through the program.
Clients also find their credit improving as they go through the program. This is due to two main factors that influence 65% of your credit score according to FICO:
- Reduced debt-to-income ratio each month you complete a payment. The ratio is improved because all unsecured debts and mortgage arrearages are paid back at 0% interest. All monies paid go straight towards reducing the principal debt, not servicing the interest.
- Restoring timely payments to your creditors. The Chapter 13 provides an organized means and order of payment to your creditors. This stops any late reporting to the credit agencies which is the #1 contributor to your credit score; recent payment history.
Know Your Foreclosure Protection Options
Many homeowners do not realize all of their options to avoid foreclosure. This is why it is important to retain experienced legal counsel before foreclosure proceedings are initiated and the sale occurs.
Acclaim Legal Services provides knowledgeable debt resolution and foreclosure prevention advice. We are known in the community for advocating for foreclosure prevention. The firm’s founder is a member of the United Way’s Michigan Foreclosure Task Force: Foreclosure Prevention and Stabilization Collaborative. We are often asked to provide training to various HUD Counselor groups to explain the process of stopping a foreclosure sale through the Chapter 13 process and other means to reduce debt and regain credit. We are committed to stopping Michigan foreclosures and helping our communities get back on their feet.
Don’t delay in dealing with your foreclosure situation – time is not on your side. Call us today at 866-261-8282 for a free consultation. We will answer any questions you may have regarding Michigan foreclosure laws and how to stop your sale immediately. Our foreclosure defense attorneys will gain a thorough understanding of your circumstances before providing qualified recommendations for your circumstances.
We offer free in-office or phone consultations to review your personal circumstances, analyze your situation and advise you on the best course of action. We specialize in bankruptcy law, debt resolution, foreclosure prevention and credit repair. We have offices in Detroit, Southfield, Dearborn, Flint, Ann Arbor and Warren, Michigan. Please call us toll free at 866-261-8282 or click here to schedule a consultation right now.