Help Fighting a Foreclosure Eviction in Michigan
The best way to fight a foreclosure eviction is to prevent the foreclosure. Various forms of assistance is offered to Michigan homeowners. If you are unable to save your home from foreclosure, consider an alternate route. When all else fails, the home is sold at an auction. An eviction occurs after the home is officially foreclosed and sold. Although an eviction may seem like the end, you can still make a final attempt to save your home.
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Contact your lender. Explain the reason that you are unable to pay your mortgage. Before the home is foreclosed, explore options such as a refinancing or modification. The federal Making Home Affordable program is offered to Michigan homeowners. Eligible homeowners can apply for assistance to lower their mortgage payments and reinstate the loan, preventing the foreclosure.
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Participate in counseling. The Michigan State Housing Development Authority offers foreclosure prevention counseling to homeowners. A counselor will review your mortgage details and evaluate your finances to determine the best solution for you. A short-sale or deed-in-lieu of foreclosure can prevent the home from being foreclosed. Counselors have extensive knowledge of assistance programs such as the Home Affordable Foreclosure Alternative program. If your lender is a participant, you can receive up to $3000 in relocation funds.
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Exercise your right to redemption. Homeowners can buy back their foreclosed home even after a sale. In Michigan, if you live in your home and owe less than two thirds of the loan amount, you have one year to reclaim your home by paying the remainder of the loan plus any attorney or court fees. If you owe less than two thirds of the amount of the loan, then the borrower has one year to redeem the property. If you owe more than two thirds of the loan amount, the redemption period is six months. When you abandon the property, you only have 30 days to reclaim your home.
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File for bankruptcy. Filing for either Chapter 7 or Chapter 13 bankruptcy will temporarily stop the foreclosure until the bankruptcy is final. An automatic stay is issued once you file. This requires your lender to cease collection activity. If you want to keep your home, consider Chapter 13 bankruptcy. You would need to continue making your current monthly payment and delinquent amount through a repayment plan. Chapter 7 bankruptcy allows you to start with a clean slate. Keep in mind bankruptcy will have a negative affect on your credit report. Carefully consider all options and associated consequences before filing.
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