{"id":1477,"date":"2021-08-02T10:54:06","date_gmt":"2021-08-02T17:54:06","guid":{"rendered":"http:\/\/investor-seller-08.carrot.com\/?p=1477"},"modified":"2021-08-02T10:54:06","modified_gmt":"2021-08-02T17:54:06","slug":"how-does-foreclosure-work","status":"publish","type":"post","link":"https:\/\/www.chrisbuyshomesdetroit.com\/blog\/how-does-foreclosure-work\/","title":{"rendered":"How Does Foreclosure Work In MI?"},"content":{"rendered":"\n<div class=\"wp-block-carrot-post-template\">\n<p>If you find yourself facing foreclosure (or even threatened by the prospect of it), it&#8217;s absolutely critical to <strong>understand how the foreclosure process works in MI.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Understanding the Foreclosure Process in MI<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">What is foreclosure anyway?<\/h3>\n\n\n\n<p>Legally, <a href=\"https:\/\/www.investopedia.com\/terms\/f\/foreclosure.asp\" target=\"_blank\" rel=\"noopener\">foreclosure is the official process <\/a>by which a mortgage lender attempts to take back real estate property (a home) securing a loan (a mortgage) &#8211; usually after a borrower (or a homeowner) stops making payments. <\/p>\n\n\n\n<p>By no means is foreclosure fun, but it&#8217;s not the end of the world.<\/p>\n\n\n\n<p>By knowing how foreclosure works in MI&#8230; you&#8217;ll be much better equipped to navigate it well and come out on the other end in the best position possible.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Stages of the Foreclosure Process<\/h3>\n\n\n\n<p>Foreclosure works differently in different states around the country, but there are a few stages that are important to any foreclosure process.<\/p>\n\n\n\n<p>There are generally two ways different states use to foreclose upon a property: <strong>judicial sale<\/strong> or <strong>power of sale.<\/strong><\/p>\n\n\n\n<p><strong>Connect with us through our<a href=\"\/contact-us\/\" data-type=\"page\"> contact page<\/a> or by calling us at (313) 217-9851 to have us walk you through the specific foreclosure process here in Detroit.<\/strong><\/p>\n\n\n\n<p>In either scenario, a foreclosure action typically doesn&#8217;t make its way to court until 3-6 months of missed payments.  Usually (but not always), a lender will send out several notices letting you know that you&#8217;re overdue or behind in your payment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Under Judicial Foreclosure:<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Your mortgage lender must file suit in the court system.<\/li><li>You&#8217;ll get a letter from the court demanding payment.<\/li><li>You&#8217;ll have 30 days to bring payment to court to avoid foreclosure (sometimes that can be extended).<\/li><li>If you don&#8217;t pay after this period, a judgement will be entered and the lender can request the sale of your property &#8211; generally through an auction.<\/li><li>Once the property is sold, the local sheriff serves an eviction notices and you must vacate the property.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Under Power of Sale (Non-Judicial) Foreclosure:<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>The lender serves you with a notice demanding payment, and the courts are not required &#8211; although there may be some level of judicial review.<\/li><li>After the established waiting period has gone by, a deed of trust is drawn up and control of your property is transferred to a trustee.<\/li><li>The trusteed can then sell your property to the lender at a public auction (notice must be given).<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">So, What Happens After A Foreclosure Auction?<\/h3>\n\n\n\n<p>After a foreclosure is complete, the amount of the loan is paid off with the proceeds from the sale of the property.<\/p>\n\n\n\n<p>Sometimes, if the sale of the property isn&#8217;t enough to pay off the loan, a deficiency judgment can be issued against the borrower.  A deficiency judgement is where the bank gets a judgement against you, the borrower, for the remaining funds owned to the bank.<\/p>\n\n\n\n<p>Some states limit the amount owed in a deficiency judgement to the fair value of the property at the time of the sale, while other states will allow the full loan amount to be asssesed.<\/p>\n\n\n\n<p><a href=\"http:\/\/www.nolo.com\/legal-encyclopedia\/after-the-foreclosure-deficiency-judgments-taxes\" target=\"_blank\" rel=\"noopener\">Here&#8217;s a great resource that lists the state by state laws when it comes to deficiency judgements.<\/a><\/p>\n\n\n\n<p>Generally, it&#8217;s best to try to avoid a foreclosure auction.  Instead, call up the bank to negotiate, or work with a local, reputable real estate firm like us at Chris Buys Homes in Detroit to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.<\/p>\n\n\n\n<p>Experienced invested can help you by negotiating directly with the banks &#8211; or even eliminate the prospect of a foreclosure, even if your home is worth less than you owe.<\/p>\n\n\n\n<p>If you&#8217;re currently facing foreclosure and need to sell a property near Detroit, please let us know. We can help!<br><br>We buy houses in Detroit, MI like yours from people who need to sell fast!<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\">Give us a call anytime at (313) 217-9851 or <a href=\"\/get-a-cash-offer-today\/\" data-type=\"page\">fill out this quick form to get started today!<\/a> &gt;&gt;<\/h3>\n<\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-1477","post","type-post","status-publish","format-standard","hentry","category-real-estate-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.chrisbuyshomesdetroit.com\/wp-json\/wp\/v2\/posts\/1477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chrisbuyshomesdetroit.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chrisbuyshomesdetroit.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chrisbuyshomesdetroit.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chrisbuyshomesdetroit.com\/wp-json\/wp\/v2\/comments?post=1477"}],"version-history":[{"count":0,"href":"https:\/\/www.chrisbuyshomesdetroit.com\/wp-json\/wp\/v2\/posts\/1477\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.chrisbuyshomesdetroit.com\/wp-json\/wp\/v2\/media?parent=1477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chrisbuyshomesdetroit.com\/wp-json\/wp\/v2\/categories?post=1477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chrisbuyshomesdetroit.com\/wp-json\/wp\/v2\/tags?post=1477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}