Foreclosure Timeline

NORTHERN MICHIGAN MORTGAGE FORECLOSURE TIME LINE It is very important that you understand how a missed payment may affect your mortgage. While you undoubtedly know that missing mortgage payments adversely affects your credit, each successive missed mortgage payment triggers certain actions by your mortgage lender and/or mortgage servicer. Below is a simplified time line of the process beginning with the first month’s missed payment. This timeline may also be found at the Oakland County Housing Counseling and Homeless Services’ website.

First Month Missed Payment

The first month you fail to make a mortgage payment your mortgage company is likely to contact you by mail and/or phone to inform you of your delinquent status.

Second Month Missed Payment

After missing a second payment, your mortgage company is likely to begin calling the contact numbers that they have for you in order to discuss why you have not made payment. It is important for you not to avoid their phone calls. Try to stay calm on the phone and explain to them your situation and what you are trying to do to resolve it. You still may be able to make one payment at this time to prevent yourself from falling three months delinquent. ****IT IS AT THIS POINT THAT YOU SHOULD CONTACT AN ATTORNEY IF YOU HAVE REASON TO BELIEVE THAT YOU WILL NOT BE ABLE TO MAKE YOUR MORTGAGE PAYMENTS****

Third Month Missed Payment

Generally, after the third payment is missed, you are likely to receive a letter from the mortgage company stating the amount you are delinquent, and that you have 30 days to bring your mortgage current. This is called a “Demand Letter” or “Notice to Accelerate”. If you do not pay the specified amount or make some form of arrangements by the date given, the mortgage company may begin foreclosure proceedings. They are unlikely to accept less than the total due without arrangements being made if you have received this letter. You still have time to work something out with the mortgage company.

Fourth Month Missed Payment

Now you usually are nearing the end of the time allowed in your Demand Letter or Notice to Accelerate letter. When the 30 days ends, if you have not paid the full amount or worked out arrangements you will be referred to the Mortgage Company’s attorneys. You will incur all attorney fees as part of your delinquency.

The Sheriff’s Sale

In Michigan, the attorney will schedule a Sheriff Sale. This is the actual date of foreclosure. You will be notified of this date by mail, along with a notice taped to your door. This is NOT a move-out date! The Sheriff Sale will be scheduled approximately 6 weeks after the attorney receives your file. You have up until this date of sale to work out arrangements with the mortgage company or to pay the total amount owed (reinstatement amount).

The Redemption Period

After the Sheriff Sale you enter your Redemption Period. Michigan State law requires the redemption period be no less than 30 days and no more than 1 year. The majority of redemption periods last six months provided the homes are occupied. You will be notified of your time frame on the same notice that states your Sheriff Sale date.

More Important Information

Stay in contact with your mortgage company, and seek assistance as early as possible. Follow the self-help checklist. Remember all of these dates are estimated, and may vary according to your individual mortgage contract.

This timeline does NOT apply for Mobile Homes or Land Contracts.


Michigan Legal Group - Foreclosures in Traverse City

Foreclosure Myths

Dread: "If I tell the mortgage company I'm having a problem, it will speed up the foreclosure process."

Contacting your lender is an important first step, and the sooner, the better. It provides you with an opportunity to explain your situation and what steps you are taking to deal with it. Yes, your lender can be your adversary, but that's much later in the process. Right now, the lender can be your best ally. So call the lender early.

Fear: "If I miss just one payment, I'll lose my home."

The foreclosure process doesn't even begin until you are at least 90 days delinquent on your mortgage. But by that time, you are three months behind, and that's a deep hole from which to try to dig out.

It's much easier to get back on track after missing a single payment, so reach out to your lender and ask for help in making up your deficit. Even if you think you might miss a payment or two, let your lender know what's up. Lenders have a financial interest in keeping you in your home and may be willing to modify the terms of your loan or devise a repayment plan.

You don't have to go through a forclosure alone!
We can help.


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