Understanding Michigan’s Foreclosure Timeline.
Day 2 to 36
Payment due on the 1st and is considered delinquent on the 2nd
Late charges are assessed for each missed payment
Lender/Servicer must make LIVE contact with homeowners, who missed their payment, to inform about loss mitigation options.
Communicate with your Lender, “What are my options, what do I qualify for?
Lender/Servicer must assign a single point of contact to homeowner AND provide written
notification of delinquency and loss mitigation options.
During this time, During this time you can work with a lender to obtain a loan workout, a modification or other loss mitigation option. If your Lender allows you to make a partial payment make it.
Don’t agree to a workout plan if you cannot afford to make the payments.
If all attempts to resolve default are unsuccessful and hardship application is
not received the foreclosure process begins.
Notice of foreclosure recorded at local courthouse.
Sheriff’s sale date is scheduled, and then published in the county newspaper for four (4) consecutive weeks including details of the debt.
Notice of the sale date gets posted on the property within two (2) weeks of the first publication.
Sheriff Sale Held-The Sheriff’s Deed lists the last date the property can
be redeemed. Up until the Sheriff Sale has occurred a homeowner may still submit a loss mitigation application.
6 (six) Months–
Redemption Period starts day of Sheriff Sale Six (6) months is most common. If more than two thirds of the loan amount has been paid, the redemption period can be up to twelve (12) months. Farming property can be up to twelve (12) months. Homeowner can live in property, not required to make payments, can sell or buy back property and should Maintain the property,Maintain utilities,Maintain,insurance And must Allow purchaser to inspect the home and all ancillary structures during redemption period. To redeem the property the borrower must pay: Amount bid at sheriff,sale + interest + fees.
Redemption Period and Inspection.
Purchaser has the right to inspect the inside and outside of property; if inspection is
unreasonably refused, then purchaser can seek to evict and terminate the redemption
If property is in need of repairs or in imminent need of repairs, a seven day notice to repair should be issued and if repairs are not made,then the purchaser can seek to evict and terminate redemption period. Interior inspection is permitted with at least 72 hours’ notice
after an initial notice providing information about the purchaser and inspection rights; the purchaser may request additional information after initial interior inspection.
When homeowner moves out of the property, if the purchaser had sent a notice about inspection, the homeowner must provide a ten day notice to the purchaser of their move out date or risk additional liability for damage s to the property occurring during the redemption period.
The purchaser can inspect the outside of the property without any notice.
EVICTION-At the end of the redemption period if you have not already vacated the home you will receive a Summons to appear in court. At the hearing, a date is set for the Sheriff to physically remove you from the property, if necessary.
Be realistic if you cannot afford to keep your home sell it. List your home with a reputable Realtor who is familiar with “short sales ” if you owe more than your home is worth. A short sale requires your Lenders approval. Always ask for a waiver of deficiency from the Lender.
Avoid Rescue Scams:
Don’t give someone money who says they can prevent a foreclosure or help you get a loan modification.
Don’t sign paperwork you aren’t familiar with or sign a deed over to someone who says they will help you. MSHDA’s Housing Education Partners can assist you with determining your housing goals and which options such as a loan modification, Hardest Hit (Step Forward Michigan) assistance or transitioning from your home best meet your individual needs. Other local community resource information is also provided.