Foreclosure FAQ

Questions

• Can you stop a foreclosure once it starts?
• Can I stop a foreclosure by paying the past due amount?
• How do you stop a foreclosure last-minute?
• What are the phases of foreclosure?
• Do I need a lawyer to stop a foreclosure?
• How long will Chapter 13 delay foreclosure?
• Can Chapter 13 save my home from foreclosure?
• Can Chapter 13 stop a sheriff’s sale?
• Can you file a Chapter 13 if your home is in foreclosure?
• How many times can you file a bankruptcy?

Can you stop a foreclosure once it starts?

Yes. Although you want to try and avoid foreclosure at all costs, there are a few ways that can possibly stop a foreclosure once it starts. Ways to stop a foreclosure include:

• Filing for bankruptcy
• Make your loan current by making up payments
• Attempt to modify your loan with your bank
• Sell your home in a short sale

Learn more about ways to stop foreclosure in Michigan >>

Can I stop a foreclosure by paying the past due amount?

Yes. In general, most lenders do not want to send you into foreclosure and would rather collect monthly payments. You may be able to contact your lender to make a certified payment of the amount owed on your property.

The payment to reinstate your mortgage must be made to the attorney that sent your foreclosure letter. Although it is rare, that attorney may be able to offer a payment plan to bring your mortgage back to a current state.

Call your lender or the attorney associated with your foreclosure for more information on how to handle your specific situation.

How do you stop foreclosure last minute?

If you are running out of time before your foreclosure is finalized, chances are that a loan modification or short sale is out of the question. Those require a bit of time to complete.

Your only action might be to pursue legal means to stop or delay a foreclosure. Filing for Chapter 13 bankruptcy will stop the foreclosure process and give you the opportunity to pay down debts through a repayment plan. 

You may file a lawsuit if you feel there was an error in the foreclosure process.  Your lawsuit may delay the foreclosure process, but you will have to prove that there was an error in the promissory note, violated your right as a homeowner or violated a foreclosure law in some way. 

Learn more about ways to stop foreclosure in Michigan >>

What are the stages of foreclosure?

The stages of foreclosure are:

• Phase 1 Payment Default: After missing a payment on your mortgage, you are in payment default (even if it is just one payment). Your mortgage lender may charge a late fee or take other action. The lender will then follow-up with a demand letter after a second missed payment.
• Phase 2 Notice of Default: After 90 days of missed payments, the lender will transfer your mortgage to their foreclosure department and send you a Notice of Default. You typically have another 90 days to try and rectify your missed payments.
• Phase 3 Notice of Sherrif’s Sale: During this phase, your property is submitted to the local county and a notification is posted that the property is for sale by auction.
• Phase 4 Sherrif’s Sale: Your property will be put up for sale by auction to the highest bidder that meets the requirements. Once the sale is completed, a Sheriff’s deed is recorded against the property.  The deed to the property will be transferred to the new owner after the redemption period which is usually 6 months.  The redemption period may be shortened if it is established the property is abandoned.  Large properties, such as a farm, may have up to a one year redemption period.  Check the notice of foreclosure and it will disclose the redemption period.
• Phase 5 Eviction: After the redemption period has expired, you will be notified that the property has been sold and you will be required by law to leave the property.

Do I need a lawyer to stop foreclosure?

If you want to keep your house and fight your foreclosure, it is best to hire an attorney. Whether you want to defend against the legality of the foreclosure or you want to file bankruptcy, a lawyer will be able to help you navigate the process.

Filing for Chapter 13 bankruptcy is a great way to help stop the foreclosure and get on track through a repayment plan. You will need an experienced foreclosure attorney to navigate this complex bankruptcy filing.

The only situation that doesn’t make sense is if you just want to stay in your home until the foreclosure process is finalized. Even then, an attorney may be able to discuss repayment options that you didn’t think were possible.

Read more on why you should hire a foreclosure attorney  >>

How long will Chapter 13 delay foreclosure?

When you file a Chapter 13 bankruptcy, it immediately halts the foreclosure process. You will then have the opportunity to include your mortgage and missed payments in the repayment plan designed by your Chapter 13 attorney.

If you continue to make on-time payments during the Chapter 13 bankruptcy, then it can permanently delay foreclosure.

Learn more about Chapter 13 bankruptcy in Michigan >>

Learn more about ways to stop foreclosure in Michigan >>

Can Chapter 13 save my home from foreclosure?

Yes! A Chapter 13 bankruptcy halts your foreclosure and sets up a repayment plan to help you get back on track.

Learn more about Chapter 13 bankruptcy in Michigan >>

Learn more about ways to stop foreclosure in Michigan >>

Can Chapter 13 stop a sheriff's sale?

Yes. As long as the sheriff’s sale has not been completed and the deed has not been transferred to a new owner, a Chapter 13 bankruptcy can stop a sheriff’s sale.

Once your bankruptcy is filed, an automatic stay prevents creditors from taking or continuing any legal action against you.

Learn more about ways to stop foreclosure in Michigan >>

Can you file Chapter 13 if your house is in foreclosure?

Yes. As long as your property has not been sold through a sheriff’s sale.

Filing for Chapter 13 bankruptcy prevents creditors from taking or continuing any legal action against you. If you want to utilize a Chapter 13 bankruptcy to stop a foreclosure, you should contact an attorney as early in the process as possible.

Learn more about Chapter 13 bankruptcy in Michigan >>

Learn more about ways to stop foreclosure in Michigan >>