Bankruptcy Overview

Foreclosure in Michigan

Detroit Michigan Foreclosure Lawyer

When you file for bankruptcy, foreclosure may not be far behind. As an experienced bankruptcy attorney, I, Walter Metzen can help you understand foreclosure and your rights within these types of situations.

If you already have a foreclosure matter that is pending against you, you may need to act quickly to file bankruptcy if you have not already done so. By doing this, you may be slowing down or even stopping the foreclosure process until the bankruptcy matter is sorted out.

Generally, if you fall more than 3 months behind on your house payments, your lender will declare the mortgage in default and begin to foreclose on your property.

When you took out your mortgage or home equity loan, you gave your lender or mortgage company a mortgage. This created a security interest or lien on your property that gives the mortgage company the right to start foreclosure proceedings to force a sale of your home (called a sheriff’s sale or foreclosure sale) because you failed to pay your mortgage loan according to the terms of the mortgage agreement.

Most lenders don't like to foreclose on your property because the process is costly and can be difficult. However, most lenders will foreclose on past due loans if they are not paid after 3 months.

Most people facing foreclosure are often experiencing other financial problems. Many people will ignore the problem, hoping that it goes away.  It is critical that you develop a plan of action to deal with your financial situation immediately. Options include:

Talk to Michigan bankruptcy lawyer Walter Metzen

If you are facing foreclosure on your home, contact our foreclosure law firm for an immediate appointment. Within days or even hours, we can bring a motion to court to stop the sale of your home. That’s the first step in some important decisions you need to make to get your financial affairs back in order.

Foreclosure Attorney Walter A. Metzen
Realistic, Creative Solutions
Free Initial Consultation • (888) 777-FILE

The same solutions don’t fit every client. At the Law Offices of Walter A. Metzen Michigan Bankruptcy Lawyer, we will go over your situation with you to determine the best actions for you to take. If you have waited until the foreclosure sale is days or hours away, we can help you stop the sale so that you can face the reality of your circumstances and determine your best options.

  • Will your mortgage lender refinance your home with more affordable payments? Is another lender willing to step in and refinance?
  • Can you negotiate a workout with the bank? Will the mortgage holder allow you to pay a portion of what you owe allowing you time to bring your mortgage current?
  • Is filing for bankruptcy the best answer?
  • Should you sell your home to satisfy the mortgage debt? By selling it yourself, it will be on your terms and at your price, not at a foreclosure sale.

Foreclosure lawyer Walter A. Metzen Michigan Bankruptcy Lawyer will give you a realistic assessment of your options. Our Michigan foreclosure law firm will help you negotiate the solution that best meets your needs and circumstances. At this point, you need a realistic, orderly approach to get your finances back on track. Wayne County attorney Walter A. Metzen Michigan Bankruptcy Lawyer can help.

It is important for you to understand that there are many, many foreclosure scams out there. Even mortgage companies may be guilty of scams. A mortgage company may tell you that they want to work with you, structure a loan workout, and help you work things out. Unless you have this in writing from the company, be very wary. Many companies have been known to give their customers facing foreclosure a false sense of security and then change their minds.

Do not let this happen to you! Get in touch with me as soon as possible to discuss your foreclosure matters. I can move quickly in order to stop or delay the foreclosure in many situations. However, once a foreclosure has been executed, not even bankruptcy can save the property.

General Foreclosure Procedure in Michigan

An attorney in the State of Michigan who is requested to commence an action for foreclosure must contemporaneously initiate the following requirements:

  1. conduct a title search;
  2. Commence publication of the foreclosure, which shall be issued once a week for four (4) consecutive weeks in a newspaper published in the county in which the property is located and the foreclosure sale must be held not less than 28 days from the first publication date.  The property must also be posted with notice of said publication by the Sheriff within the first fifteen (15) days of its commencement.  The foreclosure sale is then held at public auction, with an anticipated foreclosure sale date approximately 5-6 weeks later;

On VA loans counsel must order the appraisal on the date the client request the Michigan Foreclosure proceedings to commence. On FHA and conventional loans no further action may be taken until the redemption period has expired.

Approximately one week prior to sale the attorney should obtain the up-dated escrow figures.  In the event that the escrow figures are incomplete, it is customary that a sale may be adjourned on a week to week basis. 

Approximately 3-4 weeks after the sale,  counsel should receive the FHA deed if applicable.  At that time, counsel should calendar the conventional loans for approximately 30 days prior to the expiration of the redemption period.  In the event that an investigation reveals that the property remains occupied after the sale, counsel must send a correspondence to the occupants, by certified and regular mail, advising them the exact date the redemption period expires and that they vacate the property prior to that date.  In the event that upon expiration of the redemption period, the property remains occupied, eviction may be instituted.  On FHA loans, allow approximately 90 days prior to the redemption expiration, since the regional office of the FHA must make an individual assessment whether the property is occupied or vacant. 

The recording of a VHA deed can be accomplished as soon as counsel receives the conformed copy of the Sheriff's Deed is returned by the County Recorder, which generally takes approximately 7-10 days after sale.  After recording the deed, the new owner must arrange for issuance of an Owner's Policy of Title Insurance and submit the final title evidence direct to the VA Regional Office.  

            The redemption period normally runs six (6) months from the date of sale, however in Michigan, on 1-4 family residences the mortgagor is entitled to possession, and the rents and profits, during the redemption period.  Moreover, if the security instrument is dated prior to January 1, 1965, or the property is in excess of 3 acres in size or the principal balance has been paid down in excess of one-third, there is a twelve (12) month redemption period.  If the property has been abandoned, the period is three months and if abandoned and there exists an outstanding mortgage, which the indebtedness is more than two-thirds of the original debt, the period is reduced to one month.

Foreclosure by Advertisement

In the event that the underlying mortgage instrument contains the usual power of sale language, the premises may be foreclosed by advertisement by publishing a notice for 4 consecutive weeks, at least once a week in a newspaper of the county within which the premises are located indicating that the mortgage will be foreclosed by sale of the premises.  A copy of the publication of notice, must be posted on the premises within fifteen (15) days after the first publication of the notice.  The sale must be conducted a public auction to the highest bidder.  The mortgagor or those claiming under him have one (1) year after the sale within which to redeem, except for the following:

  1. redemption period is six (6) months if the mortgage was executed on or after January 1, 1965 on commercial or industrial property or multi-family residential property exceeding four (4) units or in the case of a mortgage executed on or after January 1, 1965 on residential property not exceeding four (4) units and not more than three (3) acres in size where the amount claimed due at the date of the foreclosure notice is more than two-thirds of original indebtedness secured;
  2. redemption period is three (3) months in the case of a mortgage on residential property not exceeding four (4) units and not more than three (3) acres in size if the property has been abandoned;
  3. redemption period is one (1) month in case of a mortgage on residential property not exceeding four (4) units and not more than three acres in size if amount claimed due at date of foreclosure notice is more than two-thirds of the original indebtedness secured and the property is abandoned. (MCLA Sub. Sec. 600.3201-3280; MSA Sub. Sec 27A.3201-3280).  Effective May 15, 1986.

Section 3241a was enacted to encompass properties abandoned after the institution of Michigan Foreclosure and may only be utilized on properties not exceeding 4 units and not more than three acres in size to reduce the redemption period.  Additionally, the property must be re-posted and mailings sent to the last known address of the mortgagor, advising of the intention to foreclose.  Upon expiration of a 15 day waiting period, the redemption period will expire 30 days following the mortgage foreclosure sale.

The mortgagor or any person lawfully claiming under him, or his personal representative, may redeem during the statutory redemption period by paying to the purchaser at the foreclosure sale, his personal representative or assignee, or to the Register of Deeds, the amount bid at foreclosure sale, plus interest, a fee of $3 and, where added by affidavits conforming to statutory requirements, certain sums advanced by the mortgages after the Michigan Foreclosure sale in payment of property taxes, assessments, insurance premiums, and amounts necessary to redeem senior liens from foreclosure. (MCLA Sub. Sec. 600.3140, .3145, .3240; MSA Sub. Sec. 27A.3140, .3145, .3240).

Eviction Procedure

Upon expiration of the redemption period and the premises remain occupied, an eviction proceeding must be commenced by filing a Summons and Complaint with the District Court.  At the hearing the Court will determine the date by which the occupants must vacate.  Counsel must arrange for an inspection of the premises immediately after the hearing date.  In the event that the property remains occupied after the date the Court sets that the premises must be vacated, a Writ of Restitution must be filed.  Approximately 3-4 weeks after the Writ is issued the holdover tenants are removed.

Land Contract Forfeiture

An attorney in the State of Michigan who is requested to commence an action instituting a forfeiture proceeding, title work must be immediately ordered to determine who are all the parties in interest.  After receipt of the title commitment, and where required by the Contract, a Notice of Intention to Forfeit Land Contract must be mailed to all parties in interest.  Unless otherwise agreed to, a 15 day waiting period must elapse during which the parties need only reinstate the delinquent amount.  In the event that there is no reinstatement, a Notice of Forfeiture is then mailed to all parties in interest.  This notice allows an additional 15 days to reinstate the account.

In the event that the outstanding balance remains and no reinstatement occurs within this 15 day period, a Summons and Complaint must then be filed in the District Court of the Judicial District in which the property is located.  Personal service must be made on all parties in interest, upon which a three week publication commences, which sets forth the date of the forfeiture hearing.  At the hearing, forfeiture is normally granted and the judgment will be in the amount outstanding as of the day judgment is entered, plus allowable costs and statutory attorney's fees.

The forfeiture redemption period runs for 90 days from the date judgment is entered, unless the contract has been paid down by 50%, in which case the redemption period will be 180 days.  The owners are entitled to possession of the premises during this time.  In the event that redemption does not occur, a Writ may issued and the occupants removed from the property.  Upon return of the executed Writ by the District Court, the document is recorded at the Register of Deeds, at which time title is vested solely in the vendor of the land contract, subject of course, to any pre-dating interest.  In the event of a reinstatement of the judgment amount, the vendee is only obligated to redeem the judgment amount.

REVISED JUDICATURE ACT OF 1961 (EXCERPT)
Act 236 of 1961


600.3140 Mortgage foreclosure sale; redemption; amount stated in recorded affidavit; portions of premises.

Sec. 3140.

(1) The mortgagor, the mortgagor's heirs, executors, or administrators, or any person lawfully claiming from or under the mortgagor or the mortgagor's heirs, executors, or administrators may redeem the entire premises sold by paying, within 6 months from the time of the sale, to the purchaser or the purchaser's executors, administrators, or assigns, or to the register of deeds in whose office the deed of sale is deposited as provided in the court rules, for the benefit of the purchaser, the sum which was bid with interest from the date of the sale at the interest rate provided for by the mortgage.

(2) The vendee of a land contract, the vendee's heirs, executors, or administrators, or any person lawfully claiming from or under the vendee or the vendee's heirs, executors, or administrators may redeem the entire premises sold within 6 months from the time of the sale by paying to the purchaser or the purchaser's executors, administrators, or assigns, or to the register of deeds in whose office the deed of sale is deposited as provided in the court rules, for the benefit of the purchaser, the sum which was bid with interest from the date of the sale at the interest rate provided for by the land contract.

(3) The register of deeds shall not determine the amount necessary for redemption. The purchaser shall attach an affidavit with the deed to be recorded under this section that states the exact amount required to redeem the property, including any daily per diem amounts, and the date by which the property must be redeemed shall be stated on the certificate of auctioneer. The purchaser may include in the affidavit the name of a designee responsible on behalf of the purchaser to assist the person redeeming the property in computing the exact amount required to redeem the property. The designee may charge a fee as stated in the affidavit and may be authorized by the purchaser to receive redemption funds. The purchaser shall accept the amount computed by the designee.

(4) If the sum for redemption is paid to the register of deeds, a fee of $5.00 shall be paid for the care and custody of the redemption money.

(5) If payments are made as provided under this section, the deed of sale is void. If a distinct lot or parcel separately sold is redeemed, leaving a portion of the premises unredeemed, then the deed of sale is void only as to the portion or portions of the premises which are redeemed.

(6) The amount stated in any affidavits recorded under this section shall be the amount necessary to satisfy the requirements for redemption under this section.

 

Contact me, Detroit foreclosure lawyer Walter Metzen today to schedule your free initial consultation. Let me help you understand your rights and explore your options.

We are a Debt Relief Agency helping people file for bankruptcy relief under the Bankruptcy Code. Let us help you decide if bankruptcy is right for you.

Bankruptcy attorney Walter Metzen represents clients throughout Southeast Michigan, including the communities of Detroit, Southfield, Warren, Roseville, Farmington Hills, Ann Arbor, Belleville, Canton, Clinton Township, Dearborn, Dearborn Heights, Hamtramck, Highland Park, Holland, Howell, Lincoln Park, Livonia, Macomb, Northville, Plymouth, Port Huron, Redford, Rochester, Saginaw, Southfield, Sterling Heights, Taylor, Trenton, Troy, Westland, Wyandotte, Ypsilanti, Mount Clemens, Howell, Oakland County, Macomb County, Wayne County, Washtenaw County, Livingston County, and all of the surrounding areas.

 

 

Detroit Bankruptcy Lawyer Detroit Bankruptcy Lawyers Walter Metzen Detroit Bankruptcy Lawyer Detroit Bankruptcy Attorney Detroit Bankruptcy Attorneys Filing Bankruptcy in Michigan Lawyer Filing Bankruptcy in Michigan Declare Bankruptcy Detroit Fresh Start Bankruptcy Detroit Southfield Michigan Bankruptcy lawyers Declaring Bankruptcy in Michigan Michigan Credit Counseling Lawyer Board Certified Bankruptcy Lawyers Warren Bankruptcy Lawyer Walter Metzen Bankruptcy Lawyer Attorney for Bankruptcy in Wayne County Bankruptcy Lawyer Oakland County Detroit Chapter 7 Lawyer  Southfield Michigan Bankruptcy Lawyer Michigan Bankruptcy Specialist Macomb County Bankruptcy Lawyer Fresh Start Bankruptcy Lawyers of Michigan Birmingham Michigan Bankruptcy Lawyers Michigan Bankruptcy Helpline Oakland County Michigan Bankruptcy Specialists Michigan Chapter 7 Bankruptcy Lawyers Michigan Fresh Start Bankruptcy Law Office Wayne County Debt Relief Agency Michigan Credit and Debt Counseling Lawyers Detroit Chapter 7 Bankruptcy Board Certified Specialist Walter Metzen Detroit Bankruptcy Attorneys Helping People File Bankruptcy Detroit Credit Counseling and Bankruptcy Services Consumer Bankruptcy Attorney in Michigan Detroit Michigan Bankruptcy Attorney Detroit Michigan Bankruptcy Lawyer Filing a Personal Bankruptcy How to declare personal bankruptcy in michigan How to File Bankruptcy in Detroit Declaring Bankruptcy in Macomb County Michigan Detroit Bankruptcy Court Directory Best Bankruptcy Lawyer in Detroit Michigan Attorney Walter Metzen Online Help Filing Bankruptcy In Detroit Michigan Michigan Chapter 13 Bankruptcy Lawyers Board Certified Specialist Detroit Chapter 13 Bankruptcy Lawyers Stop Foreclosure Repayment Plan Chapter 7 Lawyers In Detroit Wayne County Michigan Detroit Credit Counseling Information Detroit Credit Counseling Debt Settlement and Bankruptcy Lawyers serving Metro Detroit Metroit Detroit Bankruptcy Lawyers Consumer Bankruptcy Specialist Walter Metzen Board Certified by the American Bankruptcy Institute Detroit Debt Relief Agency Helping People File Bankruptcy in Michigan The Law Office of Walter Metzen Michigan Bankruptcy Lawyers Fresh Start Bankruptcy Law Office Metro Detroit Michigan Bankruptcy Law Firm Serving all of Metropolitan Detroit Walter Metzen Consumer Bankruptcy Specialist Certified by the American Bankruptcy Institute Wayne County Bankruptcy Attorneys Southfield Bankruptcy Attorneys Consumer Bankruptcy Specialists Oakland County Chapter 7 and Chapter 13 Bankruptcy Lawyer Certified Specialist File Personal Bankruptcy in Michigan Filing Chapter 13 Bankruptcy in Michigan Declaring Chapter 7 Bankruptcy in Michigan Legal Help Filing Bankruptcy in Michigan Stopping Foreclosure in Michigan Help Filing Michigan Bankruptcy Walter Metzen Bankruptcy Lawyer Michigan Bankruptcy Michigan Bankruptcy Lawyers Michigan Bankruptcy Attorneys Helping Consumers get a FRESH START Macomb County Credit Card Lawyers Bankruptcy and Debt Settlement Michigan Bankruptcy Credit Counseling and Debt Negotiation Attorneys Royal Oak Bankruptcy Lawyers Wyandotte Michigan Bankruptcy Lawyers Fresh Start Bankruptcy Lawyers of Michigan. How to Declare Bankruptcy in Michigan Michigan Bankruptcy and Credit Counseling Lawyers Michigan Credit Card Relief Lawyers Fresh Start Bankruptcy Lawyers of Detroit Michigan Credit and Debt Counseling Bankruptcy Lawyers of Michigan Lawyers Detroit Bankruptcy Bankruptcy Lawyers of Michigan Walter Metzen Board Certified Consumer Bankruptcy Specialist 888-4WALTER Michigan Bankruptcy Centers Michigan Bankruptcy Counselors Michigan Bankruptcy Court Directory Fresh Start Michigan Bankruptcy Law Offices Michigan Bankruptcy Law Center Michigan Bankruptcy Laws Filing Bankruptcy in Michigan Michigan Bankruptcy Attorney Walter Metzen Specialist in Consumer Bankruptcy Laws Board Certified by the American Bankruptcy Institute Michigan Bankruptcy Online Michigan Bankruptcy Services. Michigan Chapter 13 Bankruptcy Attorneys Metro Detroit Chapter 7 Bankruptcy Lawyer Michigan Credit Counseling Credit Counselors of Michigan Michigan Debt Assistance Michigan Debt Relief Agency Fresh Start Bankruptcy Law Center Motor City Bankruptcy Laws Stop Wage Garnishment in Michigan Detroit Bankruptcy Lawyer Walter Metzen Consumer Bankruptcy Attorney Walter Metzen Michigan Fresh Start Lawyers Downriver Bankruptcy Lawyer Michigan Fresh Start Bankruptcy Offices of Detroit Bankruptcy Attorneys Detroit Filing Personal Bankruptcy in Michigan Filing Personal Bankruptcy in Michigan Fresh Start Bankruptcy Lawyers Fresh Start Bankruptcy Law Office of Detroit