Pre-Foreclosure Stage: According to Michigan law, you are in default when a payment is 30 days late. When this happens, the lender will issue a Notice of Default when you are between 30 - 90 days late (Michigan 45 - 60 days).
The Notice of Default will provide a deadline for the payment of the total past due amount which includes all past and current payments with late fees and interest. Lenders will give you between 30 - 90 days to make pay the past due amount.
After approximately 3 - 6 months, the bank will issue a Notice of Sale and set a time for the sale to occur. The law usually requires a certain amount of time to pass between the Notice of Sale and the sale date (which can range from 3 weeks to 6 or more months). This gives the home owner time to sell the property before foreclosure. This is called a short sale.
If the property is not sold before the date of the foreclosure sale, it will be auctioned off as scheduled. In some states, the original homeowner may be entitled to a period of redemption after a foreclosure sail is complete. During this time, they may regain control of their property if they pay off the full loan debt plus any associated interest, costs, or fees. In some areas, the period of redemption may last for up to a year. In Michigan, the redemption period for home owners is 6 months.
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Once your house goes to Sheriff's Sale (also referred to as the foreclosure auction) you have a 6 month redemption period. During that time, you are still the owner of the house and can continue to live there. Att the end of the redemption period you will be contacted by the bank to move out. If you have not moved out at the end of the six months, the bank will serve you with a notice of eviction. And your foreclosure will be complete.
However, during your six month redemption, you still have the right to sell your house on a short sale. If you have not talked to any one is who knowledgeable about short sales, I highly suggest that you do that immediately. It is so much better for your credit now and in the future to do a short sale rather than have a foreclosure.
If your sheriff's sale has not occured yet, a good agent can stop the sheriff's sale and the foreclosure. If you would like to know more, visit my website at http://www.kaperproperties.com/. Or, give me a call at 248-930-0198. I would love to discuss your options with you.
Kathy Persha, Realtor
CDPE, SFR, CIAS
Nextage Advanced Realty
You'd know by the papers left on your door notifying you of a sale date downtown.
Once the sheriff sale is complete, you are allowed up to six months for the redemption period in Michigan. During this time, the bank who purchased the home will likely have a local agent stop by periodically to determine if the home is vacant or occupied.
If you are living there, please reply to the notices on the door and let the agent locally know that you are staying there.
If you aren't planning on staying at the home the entire six months, you can call the foreclosure attorney assigned to the file and ask if you are eligible for a Cash for Redemption award, in which you may receive money to move out of the home sooner than the 6 month period and leave the home in good condition.
During this time, you could also try to sell your home in a short sale. As long as the short sale closes before the redemption period, you could prevent a foreclosure on your credit record.
If you want more info or would like some advice from an agent that works with foreclosures, here I am. Please feel free to look me up online or via my website.
Thanks and good luck!