Michigan Foreclosure Recovery

Find resources to aid in the Michigan foreclosure recovery process

By Maria St. Louis-Sanchez

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.

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.
Try: 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.
Try: 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.
Try: 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.
Try: 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.

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.