When you’re facing a foreclosure, it may be difficult to know how to proceed and what options are available.
Foreclosure is the process in which a lender forecloses on a property after someone fails to pay their loan.
How does foreclosure begin in Michigan?
In Michigan, most foreclosures are done without the need for court involvement, This is known as foreclosure by advertisement.
When your lender informs you that it will foreclose upon your property due to your delinquency in mortgage payments, a foreclosure process begins. The entity that oversees your mortgage is known as your lender or the mortgage servicer. The mortgage servicer is different than the company that owns the mortgage note.
Prevent foreclosure through timely mortgage payments
To prevent any foreclosure case, the first thing is to never be behind on your mortgage payments.
When you sign for a mortgage loan in Michigan, you agree to pay your monthly mortgage payments on time.
Nevertheless, many times in life there are situations where you may be facing foreclosure because we go through emergencies, we lose our jobs, or life circumstances change.
As expert foreclosure defense attorneys, we are ready to offer legal advice to stop foreclosure. In this article, we are discussing some options.
Nevertheless, the best thing you can do to stop a foreclosure is to review your case with an experienced attorney.
The Babi Legal Group has decades of experience in stopping the foreclosure process in its tracks and providing you with free foreclosure prevention analysis.
Use a strategic mortgage default to get mortgage relief
In an attorney-client relationship, sometimes a lawyer can propose a strategic default to propose to the mortgage company modified mortgage terms through a loan modification which can reduce the monthly payment, reduce the interest rate and make your mortgage current.
This is when a borrower decides to stop making payments on mortgage debt while still having the financial capacity to do so.
Before you stop paying…
It’s critical to speak with a qualified professional before missing any payments, which can harm your credit.
An experienced lawyer usually provides free consultations to discuss your finances and the best way to achieve your long-term objectives, including addressing other debts and financial problems.
How to get a loan modification in Michigan
A loan modification is an agreement between the mortgage servicer and the homeowner, where the mortgage company can through a new mortgage agreement reduce your monthly payment and the interest rate to make your mortgage payment more affordable based upon your current income analysis.
The mortgage company will also in some cases reduce the principal mortgage balance. This makes it easier for the person to afford their monthly payments.
If you fall behind on your payments, you may be able to add the missed payments to the end of the loan, so you will not be required to repay it until your loan matures.
To apply for a mortgage loan modification to stop foreclosure, you need to contact your loan servicer at least 30 days before the foreclosure sale date. They will ask you for information about your income, expenses, and financial condition.
You will need to provide some documents to support your application. The process may seem difficult, but having a foreclosure defense lawyer on your side can make the difference between being approved or denied for a final modification.
Most law firms offer a free evaluation of your case and offer a realistic plan to assist you in obtaining a final loan modification.
A foreclosure attorney that helps you face a Michigan foreclosure
You may seek assistance from a housing counselor if you are facing foreclosure. A free housing counselor can assist you.
You should never pay a charge for lender assistance. Use a certified counselor from the Michigan State Housing Development Authority (MSHDA) or the United States Department of Housing and Urban Development (HUD).
You can also go to expert foreclosure lawyers. A law firm that is experienced in bankruptcy has a deep knowledge of the court process, the loan documents, and the mortgage litigation that has to be followed, all in a confidential relationship. They also can stop a foreclosure in its tracks by filing a bankruptcy petition before the foreclosure sale date.
In Michigan, how can I stop foreclosure?
There are several ways to stop a foreclosure and each possibility depends on the specific details surrounding your reasons for why you are facing foreclosure.
Here’s a list of foreclosure prevention methods:
- Bankruptcy, either chapter 7 or chapter 13.
- Begin loss mitigation with your mortgage servicer at least 30 days before any foreclosure sale date. This would include a loan modification; short sale; or deed instead of foreclosure.
- Filing of a wrongful foreclosure complaint in the County Circuit Court.
- Paying off the delinquent mortgage payments that have caused the foreclosure.
- Refinancing the loan before the foreclosure sale.
Once a foreclosure begins…
When you miss a payment or are unable to modify your loan, your lender can initiate the foreclosure process.
It can accomplish a foreclosure in Michigan by either advertisement or through the court process.
A foreclosure by advertisement is the announcement of the foreclosure by publishing a notice of foreclosure in a local newspaper and affixing the notice of foreclosure to your property.
This process allows the mortgage company to streamline the foreclosure process since they do not need to process the foreclosure through the court system.
Can a foreclosure attorney stop the Sheriff’s sale?
The Sheriff’s Sale Notice is published for at least four weeks. To avoid foreclosure, a law firm can assist you with a variety of things during this time.
After the Sheriff’s sale date has been established, you can find foreclosure lawyers that can help you avoid foreclosure by selling your home for fair market value before the foreclosure sale date.
You also have the option to refinance your house. Before the foreclosure sale ends, you can stop the foreclosure by seeking a loan modification. However, it is recommended that you request modification assistance at least 30 days before the foreclosure sale date.
If you decide to declare bankruptcy, then the bankruptcy automatic stay will stop and cancel the foreclosure if you file the bankruptcy case before the foreclosure sale date. Even while you are in bankruptcy, with the right legal counsel you can also request a mortgage modification that the bankruptcy court will oversee.
How to find good Michigan foreclosure attorneys?
Be careful when choosing foreclosure attorneys. You do not want to go to a debt relief firm, which will have very limited options.
Make sure the law firm you retain is experienced in both pre and post-foreclosure assistance. Ask about their knowledge of the federal law, the United States Bankruptcy Code as well as the Michigan one, since some laws are state-specific.
With the right law firm, you may even be able to rescind a foreclosure or realize any post-foreclosure equity you have in the property during your redemption period. In Michigan, you are entitled to a 6 month or 1 year redemption period, although in most cases, it’s a 6-month redemption. The redemption period is valuable time you have to seek last-minute options that could save your property or put cash in your pocket.
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