The past year has been a difficult one for many people in Michigan. The economy has taken a beating, and many people have lost their jobs or experienced a sudden drop in income.
Fortunately, struggling Michigan residents have benefitted from a number of state and federal programs. One of the most important of these has been a federal moratorium on foreclosures. This policy has already been extended a couple times, but it is currently scheduled to end in June.
Hopefully, the economy will be in better shape by then, but the end of the moratorium is going to mean a lot of Michigan residents are going to have to fight to keep their homes.
Put simply, foreclosure is a legal process by which a mortgage lender takes ownership of a property after the borrower falls into default. After taking ownership of the property, the lender typically sells it to satisfy the loan.
The process is heavily regulated by state and federal laws. The lender must get a court order to foreclose on the property and evict the borrower. Once it has such an order, it can go on with the rest of the process quickly. The public should expect a quick uptick in the number of foreclosures after the current moratorium ends.
That said, people who have fallen behind on their mortgage payments should not wait until June to get started fighting foreclosure. Michigan has instituted programs to help people with foreclosure defense. This is important because homeowners usually have a disadvantage in legal fights against mortgage lenders, which are typically banks or other well-funded institutions.
People who are facing the possibility of foreclosure should speak with an attorney about foreclosure alternatives and their options for foreclosure defense as soon as possible.