Ditroit Michigan Foreclosure Help, Defense, Laws and Process

 


Detroit is the largest city in the state of Michigan. Detroit is a major port city in the Midwest region of United States. Detroit is the only U.S city from which Canada can be seen by looking to the south. Detroit has been hit hard by national economic recession. It results in a steep decline in jobs. Detroit has recorded the foreclosure rate higher than the national rate. About 6,300 new foreclosure cases were registered in the March 2009 alone. This means, the state has a foreclosure rate close to 1 in every 270 homes in that month alone!

Detroit foreclosures can be judicial or non judicial. State of Michigan sets the foreclosure law in Detroit. The average time taken complete the process is 2 months; this is relatively short compared to other states in the country. Although Detroit offer both type of foreclosure, the most commonly practiced method is the non judicial one. The non judicial method is also known as the foreclosure by advertisement. In this method lender does not have to go to the court to start Foreclosure.

A foreclosure by advertisement starts when the home owner defaults on their loan payment as defined in the agreement. The lender can begin the foreclosure process by setting a date for a foreclosure sale. He has to post notice in news paper and in the neighborhood to make it valid. However, the home owner can redeem the property by paying the amount for which it’s being sold in the auction.

According to the new Michigan state law, if the lender is not willing to work with the property owner, the owner has the right to demand a judicial foreclosure through the court. The judicial foreclosure method takes more time than the non judicial foreclosure method.

Detroit Michigan Foreclosure Process

  • When the first monthly payment is missed, the lender may send you a notice or the lender will call you. A late fee will be charged for the payment delay.
  • When second monthly payment is missed, you will receive a phone call or letter from the collection department and the late fee will keep on accruing.
  • When the third monthly payment is missed, the lender will send you a demand letter or a notice to accelerate and will give the borrower 30 days to make the payment current.
  • When the fourth monthly payment is missed, the lender will contact the attorney to schedule a sheriff’s sale. The scheduled date will be four to six weeks after the attorney receives the file. The sale notice must be given in the news paper for 4 consecutive weeks and a notice must be posted on the property within 15 days of the first publication.
  • When the sale date is scheduled, the owner gets notified via mail.
  • The home is auctioned publically and the highest bidder will get the property
  • There is a redemption period of 6 months after the sheriff sale is completed. You don’t have to move out until this period is complete.
  • At the end of redemption period the home owner will get an eviction notice saying that, the owner lost all the legal titles of the property and has to move out.
  • The purchaser has the legal title of the home once the redemption period is over.