When it comes to Michigan foreclosure recovery, there are many steps to the process that a defaulted borrower, lender or bidder should be aware of so that they are not surprised by the process. Things such as the process of how the home is foreclosed upon to the redemption period for the defaulted borrower are different in Michigan in comparison to many other states.

Take the time to learn about some of the key terms associated with the recovery process. Here are some of those terms along with some resources to help get you started.

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Michigan foreclosure statutory redemption period

The Michigan Foreclosure Statutory Redemption Period refers to the point in time where a defaulted borrower may redeem their property by paying the defaulted amount due. Depending on the amount of default and the amount of equity, the recovery period differs.

I recommend: Visit Foreclosure University for further information on the Michigan Foreclosure Statutory Redemption Period and how it relates to the property in question.

Notice of sale

The notice of sale is drafted by the lender and required to be given to the defaulted borrower. This starts the foreclosure process in a non-judicial foreclosure. This states the amount due that the defaulted borrower must pay and the time line of that redemption process.

I recommend: Visit the website for Real Estate Zing for more information on how the notice of sale affects the redemption period within the state of Michigan.

Right to redemption

The right to redemption refers to the right that a defaulted borrower may have to reclaim their property in the state of Michigan. While the specific rules vary depending on the date of the mortgage and type of lien against the property, a defaulted owner may have up to one year to pay any back monies owed, plus interest and penalties to reclaim their property.

I recommend: Visit the website for Foreclosure Listings.com for more information on the right to redemption that the defaulted borrower maintains for a certain amount of time after the foreclosure.

Abandonment

Abandonment, in terms of Michigan foreclosure law, means that the lender has inspected the home or property in default and has ascertained that no one is living on the premises. A letter must then be sent to the last known address of the defaulted borrower informing them of the intent to foreclose. When dealing with Michigan foreclosure recovery this is quite important because if a defaulted borrower does not respond to the letter within 30 days, they lose their right to redemption or ability to recover that property outside of that 30-day window.

I recommend: Visit the website for Advantage Mitigation for a further explanation of the terms abandonment and how it affects a defaulted borrower’s right to redemption.

Tax forfeiture sale

A tax forfeiture sale refers to a sale of property through the tax foreclosure process. If a homeowner has not paid their property taxes, then the county may impose a sale. In terms of Michigan foreclosure recovery, a Chapter 13 bankruptcy may be filed in order to stop that proceeding and work out a reorganization and payment plan.

I recommend: Visit the website for Acclaim Legal Services for further information on how a tax forfeiture sale operates within the state of Michigan.

Deficiency judgment

A deficiency judgment refers to an additional judgment made against the defaulted borrower by the lender after the auction of the property. The lender may try to seek additional payment between the cost of the mortgage and the cost of the sale. However, in terms of Michigan recovery, if the deficiency judgment is filed during the recovery period, the defaulted borrower may seek to extend the redemption period through the court proceedings claiming that because of the pending litigation, that the redemption period has been extended.

I recommend: Visit the website for Real Estate Law Michigan for further information on the deficiency judgment and how it operates within the state of Michigan.

Michigan foreclosure recovery can be a tough process for the homeowner in distress. However, there is help out there. If you are facing foreclosure in Michigan, know that you are not alone. Michigan has one of the highest foreclosure rates in the nation.

If you need help getting through the Michigan foreclosure process, it is best to talk with your lender right away. There may be several options in Michigan to keep you out of foreclosure including:

1. A mortgage repayment plan may be an option if the lender is willing to give leniency and help to get the mortgage back on track.

2. Deed in lieu of foreclosure--when the homeowner surrenders the deed back to the lender. This will let the homeowner walk away from the house without going through foreclosure.

3. A short sale--when the lender agrees to let the home sell for less than the mortgage amount. Since the home is sold at a discount, it usually sells quickly and keeps the homeowner out of foreclosure.

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Know your rights and understand Michigan foreclosure law

Lenders can't just sweep in and take away your home. They have to follow a specific process dictated by foreclosure laws in Michigan. For example, homeowners who want to buy their home back have anywhere from 30 days to 1 year in Michigan, depending on the type of property and whether it was abandoned.

I recommend: Research Michigan foreclosure law at Advantage Mitigation Services. Also, Foreclosure University outlines Michigan foreclosure laws.

Seek out help with the Michigan foreclosure recovery process

There are several agencies out there to help homeowners through the Michigan foreclosure recovery process. Free services are available through government agencies or non-profit organizations that supply information about MI foreclosure recovery.

I recommend: Find a Michigan housing counselor who is certified through the U.S. Department of Housing and Urban Development (HUD). These counselors are specifically trained to help distressed homeowners discover their options. Consumer Credit Counseling Service also offers a free online course which outlines options for homeowners who want to keep their homes.

Work with your lender to recover foreclosures in MI

One of the best options for Michigan homeowners facing foreclosure is for them, or a representative, to talk with the lender. A foreclosure is expensive for lenders as well as property owners and often times they are willing to work with homeowners and give them options to avoid foreclosure. When you call the lender, ask for the loss mitigation department. This is the department that will be able to help you work out a deal.

I recommend: Look for foreclosure attorneys in Michigan at Lawyers.com who will help you work with your lender.

Watch out for mortgage recovery scams

The Federal Trade Commission warns that there are plenty of bad guys operating in the foreclosure recovery business who will take your money and provide no service. Some warning signs, according to the FTC: advertising terms like 'guarantee' and '97% success rate', upfront fees before services and company names or websites designed to make you think you're dealing with a government or nonprofit agency.

I recommend: Educate yourself about foreclosure recovery scams through the Federal Trade Commission. The FTC recommends you only seek foreclosure help from government sanctioned counseling agencies like the ones recommended by the U.S. Department of Housing and Urban Development or the federal Making Home Affordable program.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Beware of companies that promise to help through the Michigan foreclosure recovery process. There are many people out there trying to prey on homeowners in trouble and give false promises about foreclosure recovery. Chances are, that if the deal sounds too good to be true, it is.
• •  Seek out help with Michigan foreclosure recovery as soon as possible. The foreclosure recovery process is much easier when homeowners are not too far behind on their mortgages.

The Michigan foreclosure recovery process is unique to the state and strives to help both tenants and landowners. Foreclosure laws in Michigan cover all aspects of the Michigan foreclosure process. When trying to work through Michigan foreclosure recovery, it's important to get advice on how to protect your rights, avoid mortgage and loan scams, and make the most of your money.

Get information about Michigan foreclosure recovery and help understanding Michigan foreclosure law. Seek advice from an expert foreclosure lawyer or one of the many resource centers in Michigan. Make sure your Michigan foreclosure recovery advice and ratings includes:

1. Getting ratings to find top-rated Michigan foreclosure attorneys.

2. Obtaining legal Michigan foreclosure recovery information and advice.

3. Finding advice to help understand Michigan foreclosure laws.

Action Steps
The best contacts and resources to help you get it done

Work with top-rated Michgan foreclosure lawyers

The Michigan foreclosure process is a long and complicated one, so it will help to get advice and guidance from one of the many foreclosure attorneys in Michigan that specializes in Michigan foreclosure law. A foreclosure lawyer can help you understand the process, get fair results, and make the foreclosure laws in Michigan work for you.

I recommend: Michigan bankruptcy and foreclosure lawyer Walter Metzen offers steps to help you get through the Michigan foreclosure recovery process and make smart financial decisions in the future. The Farmington Hills, Michigan city webpage gives advice on how to avoid foreclosure and resources to help you through foreclosure recovery.

Get legal advice about the Michigan foreclosure recovery process

Foreclosure attorneys in Michigan can help you deal with property foreclosure by representing you in legal proceedings and helping you understand the foreclosure process. Your best bet to recover foreclosures in Michigan will be to understand Michigan foreclosure law and get expert advice from a winning Michigan foreclosure lawyer.

I recommend: The State Bar of Michigan offers resources and advice to help you through the Michigan foreclosure recovery process, including this links page of legitimate foreclosure recovery resources. Michigan HUD offers advice and counseling resources to deal with foreclosure recovery.

Obtain advice to understand Michigan foreclosure laws

Foreclosure law in Michigan is meant to protect the rights and assets of both tenants and landowners. To protect your investments, credit rating and legal rights, get expert advice from a Michigan lawyer that specializes in foreclosure law. They can give advice on how to navigate the process and help make sure you're treated fairly.

I recommend: Northville Township, MI offers advice to help property owners avoid foreclosure along with local resources that offer helpful recommendations and assistance. Gibraltar, MI also provides advice and tips to aid in the recovery from foreclosure along with links to local help.