Facing foreclosure can be a frightening experience, but homeowners in Michigan have options to save their homes. If the possibility of foreclosure is looming over you, take heart in knowing that the law provides opportunities for returning to normalcy.
Understanding these viable options for avoiding foreclosure can make a significant difference in keeping your home.
The foreclosure redemption period
Michigan law outlines a foreclosure process that includes a redemption period. This offers homeowners a chance to reclaim their property even after a foreclosure sale. During the redemption period, which typically lasts six months, you can pay the amount owed on the mortgage, including interest and fees, to regain ownership of the home. This period offers an opportunity to explore solutions and avoid permanently losing the property.
Seeking loan modification
A loan modification involves negotiating with the lender to change the terms of the mortgage. This can include extending the loan term, reducing the interest rate or even forgiving a portion of the principal balance. By adjusting the mortgage terms, the monthly payments become more affordable, allowing you to stay current and avoid foreclosure.
Refinancing the mortgage
Refinancing replaces the existing mortgage with a new one, often at a lower interest rate. This can reduce monthly payments and make it easier to stay on top of the mortgage. However, refinancing requires meeting certain qualifications, such as having sufficient income and a decent credit score.
Filing for bankruptcy
Filing for bankruptcy can temporarily halt foreclosure proceedings and provide time to reorganize finances. Chapter 13 bankruptcy allows homeowners to keep their property by creating a repayment plan to catch up on missed payments.
Homeowners should act quickly when facing foreclosure. Michigan’s foreclosure laws offer various helpful options, but you should take quick and decisive action to prevent the loss of your home.