I created this website to help the thousands of Michigan families faced with the foreclosure of their home. Whether you are in foreclosure, facing a short sale, or even a bankruptcy I sincerely hope that the information on this site helps you to make an informed decision.

John

Disclaimer

None of the information on this site should be construed as legal advice. You should always consult an attorney for advice about your specific foreclosure situation.

How Wikapedia.org  explains foreclosure…

Foreclosure is the legal process by which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor’s equitable right of redemption.[clarification needed] Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lien holders can also foreclose the owner’s right of redemption for other debts, such as for overdue taxes, unpaid contractors’ bills or overdue homeowners’ association dues or assessments.

The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a “mortgage” or “deed of trust”. Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs, and it is typically said that “the lender has foreclosed its mortgage or lien”. If the promissory note was made with a recourse clause then if the sale does not bring enough to pay the existing balance of principal and fees the mortgagee can file a claim for a deficiency judgment.

Judicial foreclosure: The lender must sue the borrower and obtain a decree of the amount in default. The court then gives the borrower a brief time to cure the default. If the borrower fails to do so, the court issues a notice of sale.

Non-judicial foreclosure is used when the loan document contains a power of sale clause authorizing the lender to sell the property to pay off the loan in the event of default. If the clause specifies the time, place, and terms of sale, that procedure must be followed. Otherwise, the process is as follows:

1. The notice of sale must be published weekly for four consecutive weeks in a newspaper of general circulation in the county in which the property is located. The notice must also be posted on the property within fifteen days after the first publication date.

2. The sale is held as a public auction by the lender’s trustee or the sheriff of the county between 9:00 AM and 4:00 PM on the date specified. The successful bidder receives a deed to the property that becomes operative at the expiration of the applicable redemption period.

3. The sale may be postponed by posting a notice of postponement at the time and place of the original sale date. If the postponement is for more than one week, the notice of sale must be re-published for four more consecutive weeks.

4. Right of redemption: If the remaining balance of the loan is more than two-thirds of the original amount-6 months; if abandoned-30 days. In all other cases, one year.