Jan
6
Added:
1/6/2012 4:09 PM
Due to the economy, many people are worried about being or are in the process of
foreclosure and do not understand the procedure. This is never a pleasant experience for anyone, the homeowner or the banks. In order to know how a
lender can foreclose on your property you should look at your documentation. Most properties in Michigan and Kalamazoo County are foreclosed “by advertisement.” The State of Michigan created a statute that determines the foreclosure procedure and the process must be followed according to the statute or the foreclosure could be considered invalid. You may have heard on the news the various
lawsuits in the works by various states. The lawsuits were filed due to the fact that each state believes the foreclosure process was not completed according to state law or statute. The rules for the State of Michigan are as follows:
- The lender must advertise a Notice of Foreclosure in a county wide newspaper for a minimum of four weeks as well as post the Notice on the actual property being foreclosed.
- The Notice of Foreclosure will state the date of the foreclosure sale and it will be performed by the county sheriff.
- A Sheriff’s Deed is presented to the winning bidder by the county sheriff.
- The Sheriff’s Deed is then recorded at the county Register of Deeds office by the winning bidder along with an affidavit stating the amount that is required to redeem the property including the per day interest amount.
- Typically the original homeowner (owner of record) has six months to redeem the property after the foreclosure sale is complete and the sheriff’s deed is recorded. The redemption time period will depend upon the type of property and the amount of time is stated in the affidavit.
- If the homeowner or property owner fails to redeem the property during the redemption period the winning bidder becomes the owner of the property upon completion of the redemption period.
If the foreclosure process has already begun or you believe you will be foreclosed make sure you review the documentation that is posted on the property by the lender. If that Notice is misplaced you can always check with your county Register of Deeds office to get copies of the Notice of Foreclosure, Sheriff’s Deed and affidavit. Typically you will be charged for copies but it is well worth having the documentation to determine how much time you have and how to proceed.
If you have been foreclosed upon or if you have any stories about foreclosures please share them so we can all learn from each other. Also, if you found this post helpful please let us know.
Joy Watts
Watts Realty Team
5071 Gull Road
Kalamazoo, MI 49048
www.wattsrealtors.com