Failing to make the mortgage payments on your home may result in the bank foreclosing on it. This means that the bank or lender can repossess your property. After foreclosure, you must move out of your home.
It is also possible that if your home is worth less than what you owe on it, the lender may leverage a deficiency judgment against you. This means that not only will you lose your home, but you will also need to pay the lender the difference. Fortunately, there are some ways that you can avoid foreclosure. They involve not ignoring the problem and understanding your mortgage rights.
Taking the problem head-on
While dealing with foreclosure is in no way pleasant, the longer you ignore it the worse the problem becomes. The best thing to do is to contact your lender the moment you realize that you are unable to make your home payments. Generally speaking, foreclosure does not benefit lenders. Most lenders will do everything they can to ensure that you can keep your home.
Make sure that you are in constant communication with your lender. This means opening and responding to any mail that they send you. Remember that failure to open communications from your lender will not be an excuse if you end up in foreclosure court.
Understanding your rights
If you are facing foreclosure, find your loan documents. Look through them so that you understand potential consequences if you do not make payments on your mortgage. You can also contact the Michigan government housing office to learn more about your specific options under Michigan law.