Facts About Michigan Foreclosures
Michigan foreclosure law does not allow the transfer of the title for a piece of property until the total purchase price is paid. If the owner is unable to continue paying on the property as agreed to in the mortgage contract, the lender does have the right to foreclose or retake the property.
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Types
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In Michigan, both judicial and nonjudicial foreclosures are legal. The former must go through the court system. The latter is sometimes referred to as foreclosure by advertisement and does not go through the courts. Nonjudicial is more common, according to Foreclosure.com.
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Time Frame
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The average time for a nonjudicial Michigan foreclosure to be completed is 2 months. Judicial and contested foreclosures in Michigan can take longer. Homeowners can delay the process by filing bankruptcy or by protesting the proceedings.
Considerations
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In Michigan, judges can require former homeowners to pay the difference between the auction price of the property and the outstanding balance on the mortgage. This is known as a deficiency judgment. The former owner may be able to contest such a judgment by arguing the auction price was below the market value for the property.
Redemption Period
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Former homeowners can regain their property by paying the winning auction price and all legal costs. This period varies depending on the mortgage; the period can be 1 to 12 months in length. According to Realty Trac, the average redemption period in Michigan mortgages is 6 months.
Sale Notification
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The lender must place an advertisement announcing the foreclosure in a public publication each week for at least 4 weeks. Within 15 days of the first public posting, a foreclosure notification must also be placed on the property.
References
- Photo Credit "Real Estate Photo Taken With Samsung NV24HD 24mm Wide Angle Lens" is Copyrighted by Flickr user: respres (Jeff Turner) under the Creative Commons Attribution license.
