Foreclosure proceedings can be among the most emotionally and financially stressful periods in the life of a homeowner. While it can be a difficult, unpleasant prospect to face, an important first step is to be familiar with the basics of Michigan foreclosure law and how an experienced foreclosure attorney can help.
How Does Foreclosure in Michigan Work?
Foreclosure is the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property. Typically, default is triggered when a borrower misses a specific number of monthly payments, but it can also happen when the borrower fails to meet other terms in the mortgage document.
The foreclosure process in Michigan can begin when one of the following events occurs:
The mortgage payments between a homeowner and his or her lender become delinquent. Missing only two monthly payments can result in your being served with a notice of default in some states, which means the lender has initiated foreclosure proceedings through the court system.
Back property taxes are owed on the home. When back property taxes are owed on the property, federal, state or local agencies can initiate a tax sale.
At this point any mortgage or lien holders with a vested interest in loans related to your property can initiate a foreclosure proceeding.
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Sherrif's Sale - How Long Can You Live In Your Home During Foreclosure?
A Michigan foreclosure is often referred to as a “Sheriff’s Sale.” People are often concerned that an actual sheriff will come and evict them from their home on that date and/or hold the auction on the property. Neither is true. This term simply refers to the public auction that is held at the county municipal offices on the date indicated on the foreclosure notice.
At this auction, a third party has the opportunity to bid on the property and take over the banks position as the mortgage holder. If no one makes an adequate offer, the mortgage continues to be held by the bank for the 6 month redemption period as outlined in Michigan foreclosure laws.
The redemption period allows an opportunity to avoid foreclosure by purchasing back your property. In order to accomplish this, you will have to pay the Sheriff's Sale price, additional costs associated with the sale and a daily interest rate. If you are struggling to pay your mortgage, chances are this is not a viable financial option. Seeking legal advice before you get to this point is the best option in a foreclosure in Michigan.
There are some instances where the redemption period is longer than 6 months depending on the size of the property or the amount owed on the property as compared to its value.
If you intend to keep your home, it is important that you take steps prior to the judicial foreclosure or Sheriff’s Sale. After the sale occurs, all of the power shifts to the bank. So time is critical if you are behind on payments or facing a foreclosure sale date to regain control and prevent the foreclosure from occurring.
Learn more about the Michigan foreclosure process >>
How to Stop a Home Foreclosure
Many homeowners do not realize all of their options to avoid foreclosure under Michigan foreclosure law. This is why it is important to retain experienced legal counsel before foreclosure proceedings are initiated and the sale occurs. Can an attorney stop a foreclosure? In many cases, yes! Determining the best way to deal with your foreclosure situation and understanding your various options to stop the sale can feel overwhelming.
Filing for a Chapter 13 bankruptcy will stop a foreclosure legally as soon as the paperwork is filed. Many law firms, including Acclaim Legal Services, offer same-day Chapter 13 bankruptcy filings.
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.
Rebalancing your budget
Prevent foreclosure by balancing your budget to allow you to regain the ability to make you mortgage payments. Many people find their budgets become unbalanced due to factors such as loss of income or underemployment, increases with other expenses, increased credit card interest rates and required minimum payments, and increases to their mortgage payment due to an adjustable rate mortgage, escrow deficiencies, etc.
Reducing overall debt
The purpose of the Chapter 13 is to make your “best efforts” to pay back your creditors over the duration of the program (36 – 60 months). Whatever unsecured debt the remains at the end of the plan is legally eliminated through a court discharge.
Resolving your debt with full court protection
Consider the Chapter 13 to be a large umbrella protecting you and your assets from your creditors and legal proceedings such as a foreclosure or repossession.
Learn more about ways to stop a home foreclosure in Michigan >>
Learn more about Chapter 13 Bankruptcy and your home >>
Trust Expert Foreclosure Attorneys
Understanding how to best prevent a foreclosure can feel overwhelming. Reach out to Acclaim Legal Services to discuss how to put a legal end to the threat of foreclosure.
Call one of our licensed attorneys today at 866-261-8282 for a free consultation on how to:
Prevent a foreclosure sale from occurring or becoming behind on your payments;
Legally stop a foreclosure sale if the mortgage company has started the foreclosure process;
Find debt relief from loan deficiency debt if you are no longer able to maintain your mortgage payments.
Our firm offers SAME DAY foreclosure protection.
With over 50 years of combined attorney experience in foreclosure prevention and debt resolution, it is time to put our experience to work for you. Call us today for a free consultation on how to best deal with your mortgage situation or pending foreclosure sale. With an A+ rating with the Better Business Bureau and a reputation of excellent customer service, you can trust our law firm to help you resolve your foreclosure matter as well as other debts you may have to improve your overall finances.