In Michigan, most mortgage foreclosures are done by advertisement. The foreclosure by advertisement process is fairly easy to understand, but recent changes in Michigan law have made the notice requirements much more onerous for the party attempting to foreclose. There are specific requirements that a bank must meet in order to comply with either the new or old version of the Michigan mortgage foreclosure by advertisement statute. The new foreclosure laws took effect on July 5, 2009, so there are many consumers that may be in the process of foreclosure during this transition from the old law to the new law. Such consumers may face confusion about whether a foreclosure was conducted properly and whether the old law or the new law applies to their particular circumstances.
Prior to recent legislation, there were many misconceptions about the requirements of foreclosures by advertisement. For example, many people raise a concern at the evictions stage of the foreclosure process that they were never notified of the foreclosure. Although the bank must give proper notice of a pending foreclosure, they were not required (prior to July 5, 2009) to send you a certified letter or serve you personally with notice of the pending foreclosure. As long as the bank published a notice in a paper in your county and posted a copy of the same notice on the property within a certain timeframe, they met the notice requirement.
Under Michigan's new foreclosure laws, a foreclosing party must serve a written notice on the borrower before the foreclosure can proceed. The notice must be sent via fist class mail AND by certified mail with a return receipt requested and delivery restricted to the named borrower. The foreclosing party must also publish a proper notice of foreclosure in a publication in the county where the borrower resides. As long as the borrower makes a request within 14 days after the notice is sent, to meet with the borrower, then foreclosure proceedings cannot commence for a period of 90 days from the day the notice was mailed.
If the borrower qualifies for a loan modification, but the lender refuses to enter into a modification with the borrrower, the lender cannot foreclose by advertisement, but can still foreclose by filing a lawsuit and proceeding with a judicial foreclosure. For more information regarding Michigan mortgage foreclosures, click
HERE.
Tax Foreclosures in Michigan
In Michigan, there are several Governmental entities that could foreclose on a homeowner due to delinquent taxes. The City, County, or State could foreclose on the property and wipe out the interests of a homeowner, mortgage lender or others who may have a claim to the property. When taxes become delinquent, the taxing authority will typically send a notice to the homeowner that the taxes are overdue. In March of each year, if property taxes remain delinquent, the taxing auhority will send a notice of forfeiture to the homeowner and the lienholder of record. The homeowner then has one year to redeem the taxes that were forfeited. If no action is taken to redeem the overdue taxes, the taxing authority can then permanently foreclose on the property and sell the property at auction and use the proceeds to pay the delinquent tax.
Tax auctions are held each year beginning in August. The auctions are held at the county and State levels. Some Counties elect to conduct their own property auctions, while other Counties prefer to let the State of Michigan handle the auction. Please call to discuss your particular tax foreclosure issues.