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.
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.
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:
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.
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:
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.
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