What is the forclosure process?

Attorney answers (2)

1. 

   Joseph Bartkus

   Grand Rapids Bankruptcy Attorney

   Contributor Level 6

   Answered August 19, 2010 11:21. Generally, in Michigan, if a mortgage has a "power of sale" clause, the bank can foreclose by advertisement if a person is in default on the mortgage. Prior to exercising the power of sale clause, the person who is being foreclosed upon must receive a notice of default and be given an opportunity to cure the default.
   The attorney representing the bank must publish a notice of foreclosure in a paper where the property is located for four successive weeks. Additional notice requirements took effect July 5, 2009 and are set to repeal two years after the effective date.
   A foreclosing party may not proceed with sale under a foreclosure by advertisement unless it has mailed by first-class mail and by certified mail, return receipt requested with delivery restricted to the borrower’s last known address, a written notice that contains the information specified in MCL 600.3205a. The notice must provide contact information for a person who has authority to agree to a modification of the mortgage loan and a list of housing counselors prepared by the Michigan State Housing Development Authority. Within 14 days after the notice is sent, the borrower may request a meeting to attempt to work out a modification of the mortgage loan. If a meeting is requested, the foreclosure cannot be started until 90 days after the date the notice is mailed to the borrower. If notice is not given as prescribed under the statute, the borrower may bring an action in circuit court to enjoin the foreclosure. The notice requirements do not apply if the borrower has previously agreed to modify the mortgage loan unless the borrower has complied with the terms of the mortgage loan, as modified, for one year after the date of modification.
   
   Following the publication, a sale is held where usually the mortgage holder is the only bidder. After the sale, there is a redemption period that allows the person who was foreclosed on to buy back the property. The redemption period can be as long as one year or as little as 30 days depending on the circumstances.
   
   Following the foreclosure process, if there is a deficiency on the mortgage, meaning that the property sold for less than what was owed, the bank can try to collect the deficiency against the person who was foreclosed on.

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2. 

   Mitchell Goldstein

   Glen Allen Bankruptcy Attorney

   Contributor Level 20

   Answered August 17, 2010 20:01. Foreclosures are governed by state law. There is a federal law that protects renters when the property is foreclosed one. There is another one that deals with military personnel. What is your situation and what specifics do you want to know.
   
   [This communication is intended as general information and not specific legal advice, and this communication does not create an attorney-client relationship.]

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