Foreclosure Legal Services

How Does Foreclosure in Michigan Work?

Foreclosure is when a lender begins a legal process to take ownership of and sell a mortgaged property in order to recover the amount owed on a defaulted loan. In Michigan, lenders can issue a notice of intent to foreclose if a borrower is over 120 days late on their mortgage payment or has failed to meet other terms in the mortgage document.

The lender can foreclose a Michigan property in two ways — by judicial foreclosure or foreclosure by advertisement. Most foreclosures in the state are foreclosure by advertisement, meaning the lender can schedule a sale of the house — referred to as a sheriff's sale — and advertise the sale in Legal News for at least four weeks.

Fortunately, a homeowner has options to stop a foreclosure before their home is sold, such as filing a Chapter 13 bankruptcy. 

Preventing Foreclosure With Chapter 13

Chapter 13 bankruptcy allows homeowners to consolidate their debts in a reasonable, court-approved repayment plan. Filing for a Chapter 13 bankruptcy will stop a foreclosure legally as soon as the paperwork is filed. Acclaim Legal Services offers same-day Chapter 13 bankruptcy filings to help you keep your home. All Chapter 13 filing, including same-day filing, must occur prior to the foreclosure sale occurring.

Chapter 13 bankruptcy helps prevent a foreclosure by:

Restructuring Your Mortgage and Other Debts

Many times, people fall into foreclosure because of an increased mortgage payment that they cannot afford or issues elsewhere in their monthly budget. By restructuring aspects of your mortgage or other bills, you can bring your budget back into alignment in order to afford your mortgage payments.

Reducing Your Overall Debt

A Chapter 13 repayment plan allows you to make your “best efforts” to pay back your creditors over the duration of the program — a period of three to five years. Whatever unsecured debt remains at the end of the plan can be legally eliminated through a court discharge. Unsecured debt refers to debt that is not backed by collateral, like unpaid credit cards or medical bills.

Resolving Your Debt With Full Court Protection

Consider Chapter 13 to be a large umbrella protecting you and your assets from your creditors and legal proceedings such as a foreclosure or repossession. When you file for Chapter 13 bankruptcy, you activate an “automatic stay,” meaning creditors are legally required to stop the foreclosure process. As long as you file Chapter 13 before your home is sold and meet the terms outlined in your custom repayment plan, you can rest assured your home and other key assets are protected as long as you meet the requirements set forth in the plan.

With Acclaim Legal Services, you'll collaborate with a dedicated lawyer to develop the optimal repayment plan for your financial goals and circumstances.

The Benefits of Chapter 13 for Stopping Foreclosure

Chapter 13 bankruptcy is not just a court-approved process to stop foreclosure — it's also a financial tool designed to get your finances back on track. Chapter 13 allows you to accomplish several goals, including:

• Catch up on missed mortgage payments: A budget-based repayment plan empowers you to pay missed mortgage payments, called arrears, while keeping your home. 
• Restructure your debt: Chapter 13 will align your budget by prioritizing your debts and reducing unsecured debts you can no longer afford. If your goal is to refinance to a more favorable interest rate, you can pursue that with security of court protection.
• Rebuild your credit score: Chapter 13 provides an achievable pathway to financial stability, allowing you to gradually improve your credit score during and after the program.

Why Trust Our Expert Foreclosure Attorneys?

Our attorneys are experts in Chapter 13 bankruptcy, but more than that, they are compassionate professionals driven to help Michigan families achieve lasting relief from debt and obtain financial security.

Our attorneys possess over 120 years of combined legal expertise in bankruptcy law and debt resolution, having helped over 17,000 clients successfully overcome their most urgent debt challenges.

Learn more about the Michigan foreclosure process >>

Avoid Foreclosure With Acclaim

We understand how stressful and overwhelming the threat of foreclosure can feel. Our caring, experienced bankruptcy lawyers are here to help you. We have 7 convenient offices across Michigan, including in Detroit, Southfield, Dearborn, Flint, Ann Arbor, Lansing and Warren, offering expert foreclosure legal services to help you protect your home. Call our team today at 866-965-2857 for a free consultation on how to:

• Prevent a foreclosure sale from occurring or falling behind on your payments.
• Legally stop a foreclosure sale if the mortgage company has started the foreclosure process.
• Gain peace of mind with court protection from foreclosure while you adapt your budget and work toward long-term financial security.

With our A+ rating from the Better Business Bureau and client-centered approach, you can trust our law firm to assist you in resolving your foreclosure matter and other debts, helping you get a fresh start.