Home Foreclosure Rights and Options
You have rights and options that may allow you the opportunity to
save your home from foreclosure. Please read more for information about
foreclosure, and the options that you may have.
What is a Sheriff Sale?
The Sheriff Sale is the actual date of foreclosure. You received notice
of this by letter from the attorneys for your mortgage company and by a
notice taped to the front door of your home. This is not a move out
date!
After the Sheriff Sale:
After the Sheriff Sale the home has officially been foreclosed on, and
will now appear on your credit report as a foreclosure. The home has
either been sold or retained by your current mortgage company. The
information regarding who bought your home and the amount it sold for
can all be obtained by the same attorneys that have been corresponding
with you during this period.
You now officially enter what is considered your Redemption Period.
Redemption Period:
By law in the State of Michigan you are guaranteed that your Redemption
Period will be no less than 30 days and no more than 1 year beginning
the day of the Sheriff Sale. Your time frame will be given to you on
the notice taped to your door. In most cases you are allowed six months
for this period of time.
During this time the only way for you to retain possession of the home
after the Redemption Period is to re-purchase the home. However, this
can be a difficult endeavor with a foreclosure on your credit report.
You may also sell the home during this Redemption Period. This will
allow you to retain any equity that you may have in the home. You must
be in contact with the attorneys to obtain the updated debt owed on the
home, as this will change throughout the Redemption Period.
Options to Prevent Foreclosure
(When Housing is No Longer Affordable)
***Different options are available when there is not enough income in
the household to support the mortgage and all other bills. These
options assist with preventing the foreclosure, but do not mean keeping
the home.
Short Sale: The mortgage company allows the homeowner to sell the home
for less that what is owed. This option can be utilized before the
Sheriff Sale. Prior arrangements need to be made with the mortgage
company before the official sale of the home.
Deed-In-Lieu: The mortgage company allows you to give back the deed to
the home in exchange for a “forgiveness” of the debt. This must be done
before a Sheriff Sale. The mortgage company may require you to have
the home listed on the market for a period of time before considering
this option.
Sale of Home: List the home for sale. This can be done before or after
the Sheriff Sale. However to prevent the foreclosure from going on
your record the sale must be complete before the Sheriff Sale date.
****During this time the best thing for you to do is to stay in contact
with the mortgage company. This is important to prevent the foreclosure
on your home, if at all possible. Unfortunately it may not mean
keeping your home, but will allow you to “spare” your credit, so that
you may purchase a home in the future.
****You have up until the date of a Sheriff Sale to “work out”
arrangements with your mortgage company, so if you can re-establish
sufficient income before that date then options that involve keeping
your home become available to you. If this does occur, you should
contact them immediately, so that your situation can be reassessed.
Options for Saving Your Home
(Loss Mitigation)
What is Loss Mitigation?
Loss Mitigation is the term used by mortgage companies to describe their
programs and department that can assist borrowers in bringing their
mortgages current.
§ The number one requirement of Loss Mitigation is affordability of the
mortgage. To be able to assist you the mortgage company must see a
budget that demonstrates to them that the income coming into the home is
sufficient to support all of the household bills.
§ When speaking to your mortgage company, ask to speak with their Loss
Mitigation department which is sometimes called the Loan Counseling
department. These are the people who are going to be able to assist you
with becoming current.
§ Other Requirements:
1. Find out what Type of Loan you have such as FHA, Fannie Mae,
Freddie Mac and VA. When you contact your mortgage company ask them who the investor is on your loan, or if you have
mortgage insurance.
2. You must contact your mortgage company and request a Loss
Mitigation package for your loan.
Loss Mitigation Options You May Have:
§ Repayment Plan: This is where the mortgage company can take the amount
that you are delinquent and add it on to your regular payment spread
out usually over 3 – 12 months (some mortgage companies will allow
longer).
§ Loan Modification: This is where the mortgage company adds the amount
that you are delinquent to the principle balance of your loan. If they
think it is necessary they may consider extending your terms back out to
30 years and/or adjusting your interest rate.
§ Partial Claim: (FHA loans or those with PMI insurance only) this is
where the insurer of your mortgage gives you a loan for the amount that
you are delinquent. This is a non-interest loan that does not need
repayment until sale of the home or pay off of the first mortgage. |
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Did you know?
Did you know that Prairie Ronde Township now has a population of over 2250?
(2010 Census) |
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Township Board Meetings
Township Board Meetings are held on the second Tuesday of every month at 7:00 p.m. in the Township Hall located at 8140 West W Ave., unless otherwise posted.
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