Foreclosure & Bankruptcy
Understanding Your Rights and Options to Save Your Home in Michigan
Can Bankruptcy Stop Foreclosure?
Yes. Filing for Chapter 13 Bankruptcy can stop a foreclosure proceeding immediately, provided the petition is filed before the Sheriff's Sale occurs. Once the sale has happened, it is generally too late to use bankruptcy to save the home. If you are facing a foreclosure notice, time is of the essence.
How Foreclosure Works in Michigan
Foreclosure by Advertisement
This is the most common method. The mortgage company publishes a notice of default for four weeks, followed by a Sheriff's Sale. After the sale, you typically have a 6-month to 1-year redemption period (depending on acreage) where you can remain in the home without making payments while attempting to redeem the property.
Judicial Foreclosure
Less common, this involves a formal lawsuit through the court system. This method is usually used if there are title issues. It can take significantly longer than foreclosure by advertisement, often lasting many months or even over a year.
The Foreclosure Timeline
In total, a homeowner in foreclosure can often occupy the property for 8 to 14 months before being required to move. This includes the initial default period, the advertisement period, and the redemption period. During this time, you are not required to make mortgage payments or pay property taxes.
Second Mortgages
If your home is foreclosed by the first mortgage holder, any second mortgage typically becomes an unsecured debt. While they no longer have a lien on the house, the lender can still sue you personally for the remaining balance unless that debt is discharged in bankruptcy.
Foreclosure Resources
Save Your Home
Don't wait until the Sheriff's Sale. Call us today to discuss an emergency filing to stop foreclosure.
CALL 616-459-6636
