How to Save a House From Foreclosure in Michigan

Michigan, much like the rest of the United States, has experienced significant troubles in the housing market, leading to many foreclosures. Fortunately, there are steps you can take to help save your house from foreclosure.

Instructions

1. Review your loan information carefully. It's important to arm yourself with knowledge about the type of loan you have and how the foreclosure process works. The more you understand about your own loan and the process for foreclosure, the better prepared you will be to save your house.

2. Call your lender immediately. The name and phone number of your lender should be shown on your monthly mortgage statement papers. Be honest and tell them exactly why you are having trouble making payments. Many lenders will be willing to work with you if you have a valid reason for why you missed your payments. The longer you wait, the harder it will be for your lender to help you.

3. Ask your lender about alternatives to foreclosure, some of which are a repayment plan, where a lender will give you a certain amount of time to make the payments you missed; forbearance, where the lender agrees to stop payments for a set period of time; loan modification, where a lender might agree to reduce your interest rate or adjust the terms of your loan; selling your home in a short sale; or a deed in lieu of foreclosure, where you transfer the title to the lender in exchange for a cancellation of whatever debt you owe.

4. Contact other organizations. The Salvation Army may have funding to assist certain homeowners in distress. If you're active in a church, ask your parish for assistance. Turning to friends and family for help is another option. Or, the Department of Human Services (DHS) offers services for certain homeowners who are behind on mortgage payments. The DHS has an "Emergency Relief Program" that has one-time grants available to assist some homeowners.

5. If the lender decided to start the foreclosure process, immediately call an attorney or a prevention counselor approved by the Michigan State Housing Development Authority (see Resources to search for an approved counselor). Many lenders will start the foreclosure process once you miss three payments.

References

• U.S. Department of Housing and Urban Development: Avoid Foreclosure: Michigan
• Michigan Attorney General: Avoiding Foreclosure
• MSHDA's Save the Dream Program

Resources

• MSHDA Counseling Agency Search
• Michigan DHS County Offices