How to Stop Your House from Foreclosure in Michigan
The majority of Michigan foreclosures are held out of court, according to Realty Trac. Without the court's involvement, foreclosures tend to happen fast. Thus, if you are falling behind on your mortgage payment or already delinquent, it is important to act immediately to save your home from foreclosure. With proper attention, you can prevent this action. If you choose not to stay in the home, there are still alternatives that can prevent the foreclosure.
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Call your Michigan lender and advise of your payment struggle. Discuss why you are unable to afford your payment. The lender may offer a repayment plan, forbearance or refinance. A hardship letter explaining the change in your financial circumstances may be required.
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Contact Michigan Foreclosure and Delinquency Assistance. This United Way-sponsored program provides information about the foreclosure process, referral services and resource information. You can reach the program through dialing 211 or 800-552-1183.
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Obtain foreclosure prevention services from a counselor. There are many experienced non-profit counselors throughout Michigan providing foreclosure help to homeowners. A counselor can review your loan, locate federal or state programs that can help and contact your lender to request a modification or refinance. The federal Making Home Affordable loan modification will lower your current interest rate and reduce your monthly payment to make the home more affordable. If you choose to participate in a short sale or deed in-lieu-of foreclosure, you may be eligible for relocation funds under the Home Affordable Foreclosure Alternative program. The U.S. Department of Treasury awards additional money to help Michigan homeowners, since Michigan is considered one of the states most impacted by the foreclosure crisis. A counselor will help you apply for assistance. You can find approved counseling agencies on HUD.gov.
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Utilize free legal aid. You can also find a list of legal aid providers on HUD.gov. Assisting low-income homeowners with advice and representation are two agencies in Grand Rapids: The Legal Assistance Center and Western Michigan Legal Services. You can also contact the Michigan Foreclosure Prevention Project for legal assistance. This organization combines service from legal aid offices and foreclosure counselors.
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