The Detroit Free Press recently published an article about wrongful foreclosure and the taking of personal property from Michigan homes in foreclosure.
Unfortunately, the sidebar notes on Michigan foreclosure law are not accurate.
The 2008 Michigan law changes do not automatically “A 2008 law then gives the homeowner 90 days to negotiate with the bank.”
The foreclosure law actually requires the initial notice to tell the homeowner they have 14 days to ASK FOR a modification.
Most homeowners are not using this provision, and the foreclosure just proceeds to the next step, the notice in the Legal News that is published weekly for four weeks.
If the foreclosure sale takes place, the home is sold by the county sheriff to the highest bidder, almost always the first mortgage company.
The first mortgage can bid up to the amount owed, without forking over any actual money.
So, if you owe $100,000, they can bid up to $100,000 just by telling the sheriff that is their bid.
The homeowner then has six months to redeem the property, for the sale price plus interest.
Mortgages always make the homeowner responsible for the costs of foreclosure, so that will be added on to the balance.
With the tens of thousands of Michigan foreclosures, firms like Trott & Trott, as alleged in the Free Press, make mistakes.
They report the redemption period as having expired before that actually happens.
Their client, the mortgage company that put in the highest bid at the sale, then hires a company to clean out the house to start to get it ready for resale.
This is a big problem when they jump the gun, because they are cleaning out your house.
If you live there past the redemption period, title to the property passes to the mortgage company, so they own the house.
But, you are a legal tenant, not a trespasser, so you have to be evicted by a court before they can take physical possession.
This is if you are STILL LIVING IN THE HOUSE.
You can sue whoever is responsible, it the foreclosing law firm made the mistake, the company that stole your goods, the mortgage company that hired them.
As always, talk to a lawyer about your rights.
Wrongful Michigan Foreclosure?