There are many homeowners in Michigan. People will purchase their homes at various times in their lives. When they purchase the home, most people will need to take out a mortgage in order to actually purchase the home. They are then required to pay back the borrowed amount to the bank over time. When the original monthly obligation is determined, it is based on what the buyer can afford at the time they obtain the mortgage, but circumstances can change over time.
People may lose a job, develop medical issues requiring significant medical bills and force them to miss work or incur other hardships. When these occur people may no longer be able to afford their monthly payments. If they miss a payment, they will be in default on their mortgage and the lender may start the foreclosure process.
Basic process from missed payment to foreclosure
This is a fairly long process though. It starts on the day after people miss a payment. For the first 36 days after the missed payment the lender must discuss the homeowners’ repayment options. After 45 days, the lender must provide written notice of delinquency to the homeowner. Until 121 days after the first missed payment, the lender must work with the homeowner about modifications or other options.
If the homeowner and bank are unable to reach a repayment agreement or modification, the formal foreclosure process starts with the bank publishing the date and time of a sheriff sale for a minimum of four weeks. The foreclosure process does not stop with the sheriff sale though. There is the typically a six-month redemption period after the sheriff sale in which the homeowner can continue to live in the house and if they are able to come up with the money to pay the amount paid at the sheriff sale or are able to sell the house, it will not be foreclosed.
Having a missed payment can be a scary time for homeowners in Michigan. However, there is a lengthy period of time that must elapse before the home is officially foreclosed. Homeowners have various options for repayment though and consulting with an experienced attorney can be beneficial.