In the state of Michigan, if the house is the owners principal residence the owner is sent a notice of default or mortgage workout. If they contact the lender/designated agent stated in the notice within 14 days of receiving the notice they have 90 days to work out a loan modification agreement. If they are unable to work out an agreement the lender may advertise the sheriff sale (90 days after the mortgage workout notice if lender is contacted or 30 days if they do not contact lender). If it is not their principal residence then they can advertise the Sheriff sale. The Sheriff sale is advertised for 4 weeks. Once the Sheriff sale/ Auction takes place the owner can still live in the house for 6 months after the sale and can redeem (retain ownership) if they can pay the amount bid at the sheriff sale (plus interest & fees) during that period. You should contact a real estate attorney to discuss your individual situation.
Keller Williams Realty
If you have more information - i can probably help.
Matt Hodges | Realtor
Traverse City, Mi