Michigan is a mid western state of the country and is the eighth most populous one having a large number of Michigan foreclosed homes. The state has the longest freshwater shoreline of all the states in the country, being surrounded by four of the five Great Lakes plus Lake Saint Clair. Michigan is the only state to consist entirely of two peninsulas – the Lower Peninsula and the Upper Peninsula.
Michigan is an industrially bustling state and real estate demand is always on the rise, barring the present economic crisis due to which more and more owners are defaulting on repaying their property loans and lenders are resorting to foreclosures in order to recoup the outstanding amount on the mortgage.
The process for Michigan foreclosure homes to be sold can take from anywhere between 3-14 months, but generally takes about 8 months. Mostly, foreclosures in Michigan are settled outside the court system as a clause in the mortgage empowers the lender to do so. The Michigan law also does not stipulate that the lender inform the owner of the foreclosure sale beforehand, but a clause incorporated in the mortgage may require that the lender notify the defaulting owner of the initiation of the foreclosure process.
A notice of sale is usually published once a week for four successive weeks in a local daily, which is scheduled two months after the lender, starts the process, not less than 28 days before the date of the scheduled sale. The notice is also posted on the property during the publication period. The notice of sale contains the lender and borrower names, default amount, mortgage information, a description of the property as per law, and the length of the period to redeem the property. The auction is held at the county courthouse between 9 am and 4 pm by a sheriff or a trustee. Anybody can bid and the winning bidder gets the property. Postponement of the sale is informed by posting a notice at the venue and time of the sale.
The winning bidder of the Michigan foreclosed homes put up for sale must receive the necessary documents stating the transfer of ownership and these must state clearly the duration of the expiry of the redemption period. The redemption period is variable, but generally runs for six months from the date of sale during which the owner can win back the property by paying the amount equivalent to the winning bid plus any costs incurred.
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Written by Alex Rolim.
