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Foreclosure Survival Guide
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Foreclosure Survival Guide (1st Edition)
| Topic | State Rule |
|---|---|
| Common type of foreclosure process | Nonjudicial: under power of sale in deed of trust |
| Time to respond | Foreclosing party must publish notice once a week for four consecutive weeks before sale and post a notice on property within at least 15 days of first publication. No notice need be mailed to homeowner. |
| Reinstatement of loan before sale | Nonjudicial: no
Judicial: allowed any time before sale |
| Redemption after sale | If homeowner occupies property and more than two-thirds of the original mortgage is still owed, redemption allowed for six months. If less than two-thirds is owed, the redemption period is one year. If the property is abandoned and at least two-thirds of the mortgage is still owed, redemption period is one to three months. Mich. Comp. Laws § 600.3240 |
| Special protections for foreclosures involving high-cost mortgages | None |
| Special state protections for service members | Mich. Comp. Laws § 32.517 |
| Deficiency judgments | Nonjudicial: may be obtained in a separate lawsuit, but homeowner can raise as a defense that property was sold for less than fair market value
Judicial: no limitations on amount of the deficiency |
| Cash exempted in bankruptcy | About $11,000 for one person, $22,000 for a married couple under federal bankruptcy exemptions |
| Notice to leave after house is sold | Nonjudicial: no special provisions for evictions following a foreclosure. New owner will likely have to go to court to get an eviction order. Court-ordered evictions usually take two weeks to a month, depending on whether or not former owner responds to the lawsuit.
Judicial: Judge may order possession to new owner when redemption period ends, if house has not been redeemed. |
| Foreclosure statutes | Mich. Comp. Laws §§ 600.3101 to 600.3180, 600.3201 to 600.3280 |