How to Avoid Foreclosure in Michigan: A Homeowner’s Guide
Facing foreclosure can be overwhelming, but in Michigan, you have rights and resources to help you keep your home. The key is to act early and seek assistance. Here’s a step-by-step guide to help you navigate this challenging situation.

1. Don’t Ignore the Problem
Foreclosure often begins after just one missed mortgage payment. Ignoring the issue or avoiding communication with your lender can make the situation worse. Lenders are generally willing to work with homeowners who are proactive and open about their financial difficulties.

2. Contact Your Lender Immediately
Reach out to your mortgage servicer as soon as you realize you’re having trouble making payments. They may offer options like forbearance, repayment plans, or loan modifications to help you stay in your home. Remember, lenders prefer to avoid foreclosure and may be willing to work with you to find a solution.

3. Open All Mail from Your Lender
It’s crucial to read and respond to all correspondence from your lender. These letters may contain important information about your mortgage and any actions you need to take. Ignoring these communications can lead to missed opportunities for assistance.

4. Seek Free, HUD-Approved Housing Counseling
HUD-certified housing counselors can provide free, confidential advice on foreclosure prevention. They can help you understand your options, communicate with your lender, and develop a plan to avoid foreclosure. To find a counselor near you, call the HUD Housing Counseling & Referral Line at 800-569-4287 or visit the Michigan State Housing Development Authority (MSHDA) website.

5. Explore Foreclosure Prevention Programs
Michigan offers various programs to assist homeowners facing foreclosure. For instance, the Michigan Homeowner Assistance Fund (MIHAF) provides financial assistance to help homeowners pay past-due property taxes and mortgage payments. Eligibility and application details can be found on the MSHDA website.

6. Understand Your Legal Rights
Michigan law provides homeowners with a six-month redemption period after a foreclosure sale, allowing time to redeem the property by paying the full amount owed. If you believe your rights have been violated or need legal assistance, contact a local legal aid office or the Michigan Poverty Law Program for support.

7. Beware of Foreclosure Scams
Unfortunately, some companies prey on homeowners in distress by offering foreclosure relief services for a fee. Be cautious of any company that
– Requires upfront payment before services are rendered
– Promises to stop foreclosure without explaining how
– Advises you to stop communicating with your lender
Remember, assistance is available for free through HUD-approved counselors and legal aid organizations.

8. Consider Legal Options if Necessary
If other options have been exhausted, you might consider filing for Chapter 13 bankruptcy. This legal process can stop foreclosure proceedings and allow you to repay your mortgage arrears over time. Consult with a bankruptcy attorney to understand if this is a viable option for your situation.

Final Thoughts
Facing foreclosure is undoubtedly stressful, but remember, you have rights and resources to help you through this. By staying informed, seeking assistance early, and exploring all available options, you can take steps to protect your home and your financial future.
For more information and resources, visit the Michigan Foreclosure Prevention Program at miforeclosure.mplp.org.