Getting a foreclosure notice is terrifying. After all, a home is the most valuable thing a person owns, not to mention a receptacle of memories and sentimental value.
Thankfully, there are ways Michigan residents can stop the foreclosure process, including:
Reinstating the mortgage loan
Some mortgages (such as the uniform Fannie Mae/ Freddie Mac mortgage) grant the borrower what’s called the right of reinstatement. This gives the borrower the chance to cure the default by paying the total amount past due. If the amount is paid, the mortgage is restored.
It should be noted that not all mortgages allow for reinstatement. Additionally, the State of Michigan creates no statutory right of reinstatement.
Redeeming the property
Borrowers in the foreclosure process have a right to redeem the property. Redemption occurs when the full amount of the loan is paid off prior to the foreclosure sale.
The right of redemption in Michigan is even broader; homeowners can redeem the property even after the sale during what’s known as the “redemption period.”
The length of the redemption period varies according to how much of the loan remains outstanding, ranging from six months to a full year.
Fighting foreclosure in court
There are strict federal and state laws governing when a lender can foreclosure. There are also strict regulations delineating the lender’s obligations during the foreclosure process.
If you suspect a lender is shirking its responsibilities under the law, it’s important to talk to an experienced foreclosure lawyer right away.
They can evaluate the facts of the case, provide you with options, and craft a legal strategy around your unique objectives.
Detroit residents shouldn’t hesitate to reach out. Many lawyers offer a free initial consultation at no out-of-pocket cost to the client.
