An Overview of Michigan Foreclosure Law

Due to the current economic crises, home foreclosure rates have been soaring in the United States. In order to slow the rate of foreclosure in Michigan, a new Michigan Foreclosure Law was passed in July of 2009. This law requires mortgage lenders to notify their borrowers before they initiate foreclosure proceedings. It also states that those in danger of foreclosure may request a meeting with their lender.

If you request a meeting about your foreclosure in Michigan, then your lender may not initiate the foreclosure until 90 days after the letter is sent. If you have questions about the Michigan Foreclosure Law, or if you want to request a meeting with your lender, then you may want to get the professional help of an Ann Arbor foreclosure attorney.

Requesting a Meeting Under the Michigan Foreclosure Law

When you receive the letter with the imminent foreclosure notification, it will include instructions on how to request a meeting. In the letter there will be a phone number for your mortgage lender’s agent, whom you must contact within 14 days. Again, if you do request a meeting, your lender may not initiate foreclosure proceedings for 90 days after the letter is sent.

The letter you receive will contain a list of home foreclosure counselors who can assist you at the lender meeting. If you do not request a meeting within 14 days of receiving the letter, then your lender can go ahead with the foreclosure in Michigan. If you want to keep your home, then you should request a meeting.

An Ann Arbor foreclosure attorney can assist you with scheduling your meeting.

What happens at the meeting?

At the meeting, you will meet with a representative of your mortgage lender. If you are able to meet certain requirements of the Michigan Foreclosure Law, then this representative will present a modification of your loan. If you don’t meet the specified requirements, then after 90 days your lender may proceed with foreclosure.

With the help of your Ann Arbor foreclosure attorney, you can do your best to meet the necessary requirements and modify your home loan. An attorney can accompany you to the meeting with your lender’s representative, and help defend your interests.

According to the Michigan Foreclosure Law, besides sending a letter, your mortgage lender must publish their intent to foreclose on your home. They must do this in the legal news, along with your address. The reason your address is published is so that other parties who may be able to help you can contact you with their services.

Once this happens, you will receive a ton of letters from companies who will claim that they can help you. Many of these companies are scams and will only try to take your money. The best thing to do to protect your home is to call an Ann Arbor foreclosure attorney. An experienced Ann Arbor foreclosure attorney can help you understand your legal options and may be able to help you save your home from foreclosure.

How do I obtain a loan modification?

In order to grant a loan modification under the Michigan Foreclosure Law, most lenders will request a hardship letter, a tax return and a proof of income. Your lender will then analyze this information to determine the terms of the loan modification. This process may take months due to the fact that lenders are currently overwhelmed with delinquent payments.

To help facilitate the Michigan Foreclosure Law, the U.S. government has offered some mortgage lenders incentives to grant loan modifications.

Dealing With Your Mortgage Lender

Unfortunately, many people face difficulties when dealing with their mortgage lenders. Lenders are notorious for losing information that they obtained to modify your loan. On top of this, your mortgage lender is often not the same as the company that services the loan. Therefore, the service agent may not have the ability to modify your loan.

If you have a problem with your mortgage lender during the loan modification process, you may want to have your Ann Arbor foreclosure attorney contact them. Working with an attorney who is familiar with this process may be able to speed things up.

Or, You May Consider Bankruptcy

If delinquent payments on your home are just one of your financial woes, and you don’t think the Michigan Foreclosure Law will help, then you may consider filing for bankruptcy in Michigan. In a Chapter 13 bankruptcy proceeding, you can put a stop to the foreclosure process. You may then be able to restructure your debts, lower your payments and make them over an extended period of time.

To stop your home from foreclosure by filing Chapter 13 bankruptcy, you can contact an Ann Arbor foreclosure attorney who also handles bankruptcy cases. An experienced attorney will go over your options for keeping your home, and can guide you throughout the bankruptcy process.