What are some alternatives to foreclosure in Michigan?

On Behalf of | Feb 12, 2021 | Uncategorized |

There may be times when a Birmingham area resident is not able to pay their mortgage. There are many reasons why this may occur including job loss, unexpected medical bills, injury, or a number of other reasons. A missed mortgage payment is a serious issue, and a mortgage company is aggressive when it comes to these situations. A person may think that foreclosure is their only option but there can be alternatives.

If a person misses a house payment their mortgage may already be in default. This can allow the mortgage lender to accelerate the terms of the mortgage and demand full payment of the balance remaining on the loan. If the homeowner is not able to pay that balance then the foreclosure process can begin. But a person may not have to lose their home and there are several alternatives to foreclosure. These may include:

  • Special forbearance
  • Partial claim
  • Loan modification
  • Second mortgage
  • Reverse mortgage
  • Deed-in-lieu of foreclosure
  • Preforeclosure sale

A legal professional who is skilled in foreclosures can help their client through this difficult situation. They can identify issues with their client’s mortgage and negotiate for them with their lender or servicer. They can work to modify a loan agreement, reduce interest rates, or achieve other modifications that allow their client to remain in their home and successfully make their payments. A person who is facing a mortgage foreclosure should contact an attorney as soon as possible in order to have a successful outcome.