The Foreclosure Process In Michigan
Here is an overview of the foreclosure process from the Michigan State Housing Development Authority:
- Day 1-15: Mortgage payments are typically due on the first of each month, and if not paid by then, it is considered delinquent.
- Day 16-30: A late fee is usually assessed after day 15, and you may begin receiving phone calls.
- Day 31-45: A loan enters default when it is 30 days late, and a second notice is sent. This default date will negatively impact your credit score.
- Day 45-60: You will receive a “demand” or “breach” letter, stating that the terms of the mortgage have been violated.
- Day 61-90: The lender may initiate acceleration procedures, notifying you that foreclosure is the next step. At this time the lender will only accept your total past due, including all past and current payments with late fees and interest.
- Day 91-105: The lender’s representative may record a formal notice of foreclosure at the local courthouse, publish details of the debt in the local newspaper and make appropriate court filings. If you abandon the property or the property is red-tagged at this point, your home may be repossessed. Your locks may be changed and your utilities disconnected.
- Day 150-415: The house is sold at a foreclosure sale or auction. In a sheriff sale, the lender’s attorney advertises the property in a general-circulation newspaper for four consecutive weeks before selling it to the highest bidder. After the property is sold at a sheriff sale, you still have a redemption period during which the property can be reacquired. The redemption period in Michigan is usually six months. Redeeming the property by selling it on the market is often a good option.
Need To Stop Foreclosure? Our Lawyers Can Help
The foreclosure defense lawyers at Roose Law PLC will explain all your options for stopping foreclosure or redeeming your house after a sheriff sale. Schedule a free consultation by calling us at 248-331-1200 or contacting us online. We offer consultations in Flint, Southfield and Roseville, Michigan.