What is Foreclosure in Ann Arbor, Michigan?

Find the right Foreclosure Bankruptcy attorney in Ann Arbor, MI

Foreclosure is the procedure through which the lender in a mortgage takes ownership and/or possession of the property that secured the original loan. This happens when a debtor in Ann Arbor, Michigan has consistently failed to make their payments. Foreclosure usually results in the property being sold in an auction. Banks usually want to get rid of the property as soon as possible, even if it means taking a financial hit, and an auction is the simplest way to do this.

In every state, including Michigan, borrowers have the option to go through foreclosure by judicial sale. This means that the auction will be supervised by a court, to make sure that the bank makes an effort to get as high a price as possible (to increase the chances that the whole balance will be covered, as well as the odds that there will be some money leftover for the debtor). In some states, original mortgages are treated as "non-recourse" loans, meaning that, at most, the lender can take possession of the house in the event of foreclosure, even if it is worth less than the amount due. The bank cannot go after the borrower for the remaining balance once it sells the house. You should consult an attorney in Ann Arbor, Michigan to find out if this is the case here. This usually does not apply if the mortgage has been refinanced.

How Can I Avoid Foreclosure in Michigan?

First, you should never dismiss the matter. As unpleasant as it seems, it is necessary to stay on top of the issue. Ignoring the problem will never make it go away. You should keep in mind that banks usually don't want to take your Ann Arbor home. They aren't in the real estate business, and expect to make money through interest on the loan, not by selling your house. If you are up-front with them early on, they will probably make a reasonable effort to accommodate your financial system if it will prevent you from defaulting.

If you can't work things out with your lender, there are other avenues. You can try a "short sale," which is when you sell your house for whatever amount you can get for it, and use the proceeds to pay your mortgage. If the house sells for less than you owe, the bank still receives those proceeds, but the remainder of the loan will be forgiven. You may also consider a "short refinance" which allows a portion of the debt to be forgiven, while refinancing the rest, hopefully under better terms.

How Can A Ann Arbor, Michigan Attorney Help?

If you are worried about foreclosure, a good Ann Arbor, Michigan real estate attorney may be able to help. An attorney can increase your chances of keeping your home, and help minimize the financial impact if keeping it proves impossible.

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Life in Ann Arbor

Ann Arbor, Michigan is a city in Washtenaw County, of which it is also the county seat. Its current population is approximately 114,000 people, making it the sixth largest city in Michigan.

Ann Arbor was founded in 1824, and is perhaps best known for being the site of the University of Michigan. The University of Michigan is one of the most prestigious educational institutions in the United States, and is generally considered one of the "public ivies" - public universities which are considered to be on par with the universities in the Ivy League. The University of Michigan is particularly well known for its law school, which is one of the top 14 law schools in the country. This school has produced thousands of extremely accomplished Ann Arbor, Michigan lawyers.

And thanks to the presence of a large university, Ann Arbor, Michigan has largely been spared the economic woes that have affected the rest of the state. The university employs a large number of people, and provides local businesses with a large customer base.

If you live in Ann Arbor, Michigan, and are in need of legal services, there's a very good chance that there's an Ann Arbor, Michigan attorney who can help you.

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