There are two ways for a creditor, other than the government, to foreclose in Michigan, judicial, and by advertisement, or publication. If filed before the judgment or sale, the automatic stay imposed by filing any chapter of bankruptcy stops the foreclosure process.
Judicial foreclosure is a longer, more expensive process, so is rarely used.
All the mortgage forms used by mortgage companies provide for foreclosure by publication, that is, power of sale upon default. That is the first requirement of the statute, MCLA 600.3201 and following.
How do you find out if your home is in foreclosure? Not by a letter from anyone, attorney or creditor. Letters telling you, for example, “your account has been forwarded to the foreclosure department,” “foreclosure will start if you do not pay by such and such a date,” and the like, have no legal significance in Michigan. Rather, a notice, including the statutorily required information, must be published for four successive weeks in a newspaper published in the county in which all, or part, of the property is situated.
In metropolitan areas, this paper always turns out to be the Legal News for the city that is the county seat. Only a few lawyers, and real estate speculators read it.
The statute also requires that a true copy of the notice, which is about 4-5 inches long, and 2 inches wide, be posted in a conspicuous place upon the place being foreclosed. This must happen within 15 days of the first publication.
In Detroit, you will receive many communications, from lawyers wanting to represent you, realtors wanting to sell your house, mortgage brokers wanting you to re-finance, and outright scammers with deals that sound to good to be true that will (supposedly) save your home. The standard rule applies–if it sounds too good to be true, it is.
Odds are, you will get one or more of these letters before you get the official notice.
TO BE CONTINUED