Michigan Foreclosure Process
The Michigan foreclosure process begins when the homeowner misses at least one mortgage payment. (Note: Exactly when the process begins can be dependent on the lender.)
But no matter the circumstances, once you miss a payment, the lender will reach out via letter or by phone.
After the second missed payment, the lender will call again and likely still be interested in helping you make arrangements to help you get caught up on your payments. After three missed payments, the lender will send a letter giving you 30 days to get current on your mortgage. At this point, your mortgage is in default.
Notice of Default
After the fourth missed mortgage payment, your loan is in default and a public notice will go to you. At this point, the Michigan foreclosure process will begin.
Notice of Trustee’s Sale
After that, forms are filed with the court and then the lender’s attorney or the foreclosure trustee will schedule a date for the sale of the property. The notice is then recorded in the county along with what the opening bid will be.
The auction will then be advertised in the newspaper and in ads in the community. The lender must advertise the sale for at least four weeks. The date could be 2-3 months from the notice of default but is usually longer. A notice must also be placed somewhere on the property.
This ad or notice must include:
- Names of the borrowers
- Date of the mortgage and when it was recorded
- Amount due
- Description of the property in foreclosure
- The property address
- Length of the redemption period
- Name, address, and telephone number of the attorney for the party foreclosing the mortgage
- Information about the sale
Don’t forget: At this point, you can still pay the amount due and keep your home.
Your house is then put up for auction and will go to the highest bidder. You can try your best to be the highest bidder.
If you are unable to bid high enough, whoever buys the property determines how long you’re able to stay in the home. If your home doesn’t sell, the lender becomes the owner and will likely attempt to sell the home through a broker.
Once the home is sold either to another person or back to the lender, you will be ordered to evacuate the house if you are still living in it. You may be provided days to exit the property or you may be told to exit the house immediately.
Michigan Foreclosure Timeline
The Michigan foreclosure process follows a timeline and while it can differ depending on your specific situation, the foreclosure timeline in Michigan usually looks something like this:
- Day 2-36: If your mortgage payment is due on the 1st and it’s not paid, it’s considered delinquent the next day. At this point, the lender must contact you about the missed payment and what you can do to fix the problem.
- Day 45: At day 45, the lender must provide you with a single point of contact as well as a notification of delinquency and options to repay the amount due. Bank of America, Chase, CitiMortgage, GMAC/Ally, and Wells Fargo all will give you the number of a law firm to deal with negotiations and any meetings you need to have.
- Day 46-120: You can work with your lender to obtain a payment schedule, a modified loan, or another option to help you pay back the amount you owe. If they allow you to make partial payments, that may be the best option. If you can’t afford to make payments, don’t agree to a payment plan.
- Day 121: If an agreement can’t be made, the foreclosure process begins at this point. The sale date of the auction is scheduled and put in the county newspaper. Until the house is sold at the auction, you can still submit a loss mitigation application and try to redeem your home.
- 6 months: The sale of the property usually happens at this point and when the property is sold, the redemption period is over and the new owner can evict you at any time. Additionally, if the house is sold for less than the total debt owed, the lender can seek a judgment on you that requires you to pay whatever amount is leftover from the sale. That being said, you can contest this judgment
Foreclosure Solutions With Renewed Homes
If your house is in foreclosure, you don’t have to go through this whole process alone – or even at all. At Renewed Homes, we can buy your home for cash within 24 hours so you can start anew or pay the reinstatement fee. We can help you move out quickly, and then come up with a payment plan that works best for you.
These options allow you to get out of your home quickly if necessary, stay in your home if that’s what you want, and not have to deal with the hassles of foreclosure on your own.
To discover how we can help you, please call Renewed Homes today! We’re here for you.