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How to Stop Foreclosure in Michigan

How to Stop Foreclosure in Michigan

Michigan has been hit particularly hard by the recent economic crisis.  Learning how to stop foreclosure in Michigan does not need to be difficult, but it is important that you seek out information before it is too late.  Many resources exist to help Michigan homeowners to stop foreclosure.  Homeowners in Michigan can sometimes avoid foreclosure and eviction even after a sheriff's sale of their property, so understanding how to stop foreclosure in Michigan can help you even at a very late stage in the foreclosure process.

Before Notice is Published

Most lenders will not foreclose on a borrower until several consecutive payments have been missed.  Although Michigan foreclosure laws technically allow a lender to begin the foreclosure process after only one missed payment, most lenders will simply charge a late fee.

One important thing to remember when learning how to stop foreclosure in Michigan is this: there is already a glut of abandoned and foreclosed-upon houses in the state.  Your lender has no desire for yours to become yet another of them.  This means that one of the best resources for finding out how to stop foreclosure in Michigan is your own mortgage lender.

Many people are afraid to call their mortgage lender when they are behind on payments.  They assume they will be berated or shamed.  Instead, your mortgage lender will probably try to work something out.  If you can't find room in your budget for your current payments, the mortgage may be rewritten to give you lower payments.  If you have suffered a temporary financial setback, a “forbearance” may push some payments back so you can get back on track.  Payment plans can be made to take care of late bills.  Only your lender can do this, so call as soon as possible to see what they can do to help you avoid foreclosure.

After Notice is Published

In order to foreclose upon you, your lender will begin publishing a notice of sale for four consecutive weeks.  The notice will also be posted on your property.  Your lender, depending on the terms of your loan, may not even have to give you notice before this that the property is being foreclosed upon.  If a sheriff's sale is coming up, you have a limited amount of time to act before it is completed.  

Call your mortgage lender and, if possible, a Michigan foreclosure or bankruptcy attorney.  They can tell you how to stop foreclosure in Michigan before the sale, including a short sale of your house or even declaring Chapter 13 bankruptcy.  Both of these things will have negative effects on your credit, but a short sale will be a much smaller negative mark on  your credit score than foreclosure, and Chapter 13 may allow you to keep your home.

After the Sheriff's Sale

You may be surprised to learn how to stop foreclosure in Michigan even after the sheriff's sale.  You will have several months (up to 12) to “redeem” your property, which means to pay off your mortgage in full.  This means that you may still be able to complete a sale or refinancing of your property during this time.  Talk to a foreclosure lawyer for more information about your options after a sheriff's sale.

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