- Foreclosure relief at a glance
How Michigan forecloses
Usually by advertisement, without a lawsuit, ending in a sheriff's sale
Stops
The sheriff's sale, while the case is open
Missed payments
Spread across a 36 to 60 month Chapter 13 plan
Other options
Loan modification, reinstatement, forbearance or a planned sale
Second mortgages
Can sometimes be removed if the house is worth less than the first
Cost to start
From $0 down if you are W2 employed
How foreclosure works in Michigan
Most Michigan foreclosures are done by advertisement, so the lender does not need to file a lawsuit. After the notice is published and posted, the house is sold at a sheriff’s sale and a redemption period begins. For most owner-occupied homes that period is six months.
The earlier you call in that timeline, the more options are open.
Stopping the sheriff's sale
Filing bankruptcy before the sale puts the automatic stay in place, and the sale cannot go ahead while the case is open. A Chapter 7 buys time. A Chapter 13 lets you keep the house.
If you have a sheriff’s sale date, timing matters more than anything else on this page. Call rather than filling in a form.
Catching up through Chapter 13
In Chapter 13, the missed payments are added to a plan and paid off over 36 to 60 months. You keep making the regular mortgage payment alongside the plan payment. Once the arrears are paid, the loan is current again.
Unsecured debts like credit cards are usually paid pennies on the dollar in the same plan, which frees up money for the house.
Second mortgages and home equity loans
If your home is worth less than you owe on the first mortgage, a second mortgage or home equity line can be treated as unsecured in Chapter 13. It is then paid like a credit card, often at pennies on the dollar, and the lien is removed when the plan is completed. This depends on a current valuation of the home.
If the sale has already happened
A completed sale is harder to undo, but the redemption period still matters. In most cases you can stay in the home during it, and you may be able to redeem, sell or negotiate with the lender. The options narrow as the end of redemption gets closer, so call as soon as you can.
Other ways to keep or leave the house
- Loan modification the lender permanently changes the loan terms
- Reinstatement: paying the full arrears in one sum before the sale
- Forbearance: a temporary pause or reduction in payments
- A planned sale, to keep your equity instead of losing it at auction
We look at all of them on the first call, including the ones that do not involve bankruptcy.
Find out what your case costs
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