Michigan State Foreclosure Laws
In judicial foreclosure, a judge determines the borrower’s debt and sets a deadline for payment. For non-payment, the court will issue a notice of sale.
A power of sale provision in a mortgage or deed of trust triggers the nonjudicial foreclosure procedure. In a deed of trust or mortgage, a borrower pre-authorizes the sale of the property to pay back a debt if they fail.
In deeds of trust or mortgages with a power of sale, the lender or their representative, often referred to as the trustee, may sell the property.
Power of Sale Guidelines
A power of sale provision in a deed of trust or mortgage must be fulfilled if it specifies the time, location, and conditions of sale. Without court approval, the nonjudicial right of sale foreclosure is set as follows:
- It must be published weekly for four (4) weeks in a publication with a wide distribution in the country, at least (15) fifteen days after the original notice of sale. The notification must include the borrower and lender names, property description, selling conditions, and sale time, place, and date.
- The highest bidder must win the auction. On the day specified in the notice of sale, the trustee or the county sheriff may conduct the sale between 9:00 am and 4:00 pm.
- The sale may be delayed by publishing a notice at the original time and location. Postponements of more than one week must be announced in the same way as the initial sale notice.
What Happens in the Foreclosure Process?
If you are struggling with debt and your mortgage payments, you may have received a notice of intent to foreclose from your lender. This is an important notification, but it is not the final action that will result in the loss of your home.
In Michigan, lenders must commence an action through the court system before they take possession of your property. This means that there are many opportunities to prevent foreclosure and save your home.
Alternatives to Stopping a Foreclosure
Here are several foreclosure alternatives. Ask your lender or bank to see whether you qualify for any of these foreclosure programs.
- Forbearance on a Special Basis. Your lender may be able to arrange a repayment plan with you that includes a temporary reduction or suspension of your payments, depending on your financial situation. You may receive help if your income has recently decreased or your living expenses have risen. If you are unable to adhere to the terms of the new payment plan, you must notify your lender.
- Mortgage Modification. Refinance your debt or prolong your home loan term. A lower monthly payment may help you catch up. If you have overcome a financial challenge and can afford the additional payment, you may qualify.
- Partial Claim. A one-time payment from the FHA-Insurance fund may be available to your lender to help you catch up on payments. The full mortgage payment may be required to qualify.
- Pre Foreclosure sale. To prevent foreclosure, sell your home for less than your mortgage debt balance.
- Deed-in-lieu of foreclosure. By giving your property back to the lender, you may avoid foreclosure. Your home is not saved, yet it does not affect your credit as severely as a foreclosure. Foreclosure is a possibility if you are in default and have tried unsuccessfully to sell your home previously.
How Can I Stop Foreclosure in Royal Oak, Michigan?
If you are facing the possibility of foreclosure, it is important to contact a lawyer who is well-versed with the laws and regulations that govern the proceedings. By working with our foreclosure attorneys to stop foreclosure in Royal Oak, Michigan, you can avoid losing your home. Foreclosure proceedings can be confusing, but our team is here to help you understand your options and take the steps necessary to prevent the proceedings from going forward.
We will also help you understand how much time you have before you make any decisions about how to stop foreclosure and how to proceed once you have decided on a course of action. The best way to protect your rights and prevent the loss of your home is by working with Hammerschmidt Stickradt & Associates skilled bankruptcy and foreclosure lawyers who can provide personalized solutions that meet your needs. Schedule your free consultation now!