How to Stop Foreclosure & Eviction in Michigan

Stop a Michigan foreclosure in its tracks.

For most of us, financial problems are a fact of life, particularly in Michigan where the economy has been off for several years. There may even be times when you have to decide between putting food on the table and making a monthly mortgage payment. If that continues for a couple of months, a lender may institute foreclosure on your home. You can either move out or find a way to slow down or stop the foreclosure.

Instructions

1. Take out a home equity loan or refinance your house. If your mortgage is five or more years old, you have managed to pay down your debt. Besides, if the property has risen in value, you have accumulated equity, some of which will allow you to bring your current mortgage up to date. And if you refinance the loan at a lower interest rate, you'll also benefits from lower monthly payments.

2. Ask your lender if he is willing to alter your current mortgage, particularly if your real estate has eroded in value, a recent occurrence in Michigan and other parts of the country. If you are seriously behind on your mortgage payments, your lender knows that foreclosure is about to happen, and he will probably receive only a portion of his money when an auction takes place. Likely, if he reduces the loan, he will not have to take the house into inventory and you will owe less money. Other things a lender could do is extend the loan, which will reduce your payments, or tack the payments on the back end of your loan to make you current.

3. Sell your house if you have run out of options. Although many homes in Michigan are selling for less than a few years ago, you may be able to sell your home for at least what you owe. You will reduce the pressure of foreclosure as you work to repair your finances and you'll do less harm to your credit rating than if the lender foreclosed on your house.

4. If all else fails, declare Chapter 7 bankruptcy, which will stall the foreclosure. Furthermore, in Michigan, the first $34,450 of your primary residence is exempt, or $51,650 if you are elderly or disabled. Think twice about doing this as it will have a negative effect on your credit rating and make it difficult for you to borrow money in the future.

References

• Legal Consumer: 50 State Homestead Legal Consumer: Exemptions & Other Bankruptcy Exemptions

Resources

• Walter Metzen: General Foreclosure Procedure in Michigan