Michigan Foreclosure Law

Michigan Bankruptcy and Foreclosure Prevention Attorneys

Although you may be fully aware of your financial circumstances, receiving a notice of foreclosure can be alarming and overwhelming. At Acclaim Legal Services, we provide you with knowledgeable advice about the foreclosure process in Michigan and inform you of your options.

Contact our Michigan law office to learn more about Michigan foreclosure laws and speak with an experienced lawyer about your financial situation.

Foreclosure Law

A power of sale enables a lender to sell the property in order to pay off the remaining balance on a loan that has gone into default. It also enables the lender to move forward with the foreclosure proceeding without obtaining court approval. In Michigan, all mortgages are required to have a power of sale clause.

Michigan Foreclosure Process and Guidelines

If not set out in the power of sale clause, the foreclosure process must be conducted according to state foreclosure laws. If the foreclosure process is initiated by advertisement, the foreclosure must follow specific guidelines, such as:

• The mortgage must be in default
• All mortgage assignments must be recorded
• You must be notified of the default and foreclosure according to the terms in the mortgage
• The notice of foreclosure must also be posted in the newspaper for four consecutive weeks and must be posted on the property
• The entire balance must be repaid to stop foreclosure and redeem property once the sale has occurred
• If another buyer purchases the property at the sheriff's sale, you still have the opportunity to redeem the property during the redemption period.

Issues with unpaid property taxes

If you owe back property taxes, they can be included as a debt under the Chapter 13 program. The total tax liability is spread out over the life of the plan (36 - 60 months) at 1% interest without continued penalties.

If you are facing a Tax Forfeiture sale, this means that the taxing authority is initiating a foreclosure sale due to unpaid property taxes. This foreclosure can also be stopped through the filing of a Chapter 13 Bankruptcy. The total unpaid taxes are paid over the duration of the Chapter 13 (36 - 60 months) at a rate of 12% interest without continued penalties.

Even if the Chapter 13 is filed after the Tax Foreclosure, your home will still be protected. The only difference is that the repayment is at 18% interest after the sale occurs vs. 12% interest if the case is filed before the sale occurs.

To understand how the Chapter 13 Reorganization can improve your circumstances, call one of our highly qualified Michigan Bankruptcy Attorneys today. We offer free consultatnions.

Redeeming Your Property

There are multiple ways in which you may redeem your property following notice of foreclosure. You may repay the arrearage balance to bring the house out of foreclosure, file for bankruptcy under Chapter 13, or pay the amount paid for the property plus interest and/or sell the house after the foreclosure has occurred before the expiration of the redemption period.

Generally, the redemption period following a foreclosure sale is six months. However, there are exceptions for a shorter or longer redemption period.

Stop Foreclosure. Protect Your Home.

At Acclaim Legal Services, we can give you a more thorough explanation of foreclosure law in Michigan and how they apply to your financial circumstances. We can explain your remedies to avoid foreclosure, stop foreclosure, or redeem property.

Contact the bankruptcy attorneys at Acclaim Legal Services to discuss how we can help you achieve peace of mind and financial security. Call us at 866-438-5217.