What is Foreclosure in Livonia, Michigan?

Find the right Foreclosure Bankruptcy attorney in Livonia, MI

Foreclosure is the process 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 Livonia, Michigan has repeatedly failed to make their payments. When a house is foreclosed, it is typically sold at auction shortly thereafter. This is because banks typically want to get rid of the property as soon as possible, even if it means losing some money, and an auction is an easy way to do this.

In every state, including Michigan, there is an option to go through foreclosure by a judicial sale, which is a procedure in which a court supervises the sale of the property, and makes sure that the proceeds first go the to the holder of the mortgage, then to anyone else who may have a lien on the property, and finally to the debtor if anything is left. In many states, original mortgages (as opposed to refinanced loans) are "non-recourse" loans, meaning that the most the lender can collect is whatever the foreclosed property sells for. The bank cannot go after the borrower for the balance, if the sale nets less than the amount due. You should consult a lawyer in Livonia, Michigan to learn the details of the law here. You should also know that this rarely applies to loans which have been refinanced.

How Can I Avoid Foreclosure in Michigan?

First and foremost, you should not ignore the possibility of foreclosure. Failing to respond to collection calls from your lender will not make the problem go away. As unpleasant as this might seem, you should stay in contact with your creditor, and be forthright with them. It is crucial to remember that the bank does not really want your Livonia house - they expected to make a profit through the interest on your loan, and that's what they'd prefer to do. Accordingly, they will probably make reasonable accommodations to your financial situation if it means that you will be able to make some form of payment to them.

If no deal can be worked out, or the mortgage payments have become prohibitive, you might consider a "short sale". While the lender has to consent to it, many will take a moderate loss if it means avoiding foreclosure (which lenders usually treat as a last resort). This allows you to sell the house for whatever price it can fetch on the current market, and hand the proceeds over to the bank. If the sale nets less than the balance, some or all of the deficiency might be forgiven. You might also consider a "short refinance" which allows a chunk of the debt to be forgiven, and lets you refinance the rest.

How Can A Livonia, Michigan Attorney Help?

If you are worried about foreclosure, a good Livonia, Michigan real estate lawyer might be able to help. A lawyer 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 Livonia

Livonia is located in Wayne County, Michigan. It is home to around 96,950 people, making this area a very large suburb.

Some of this large suburb's top employers include Comerica Bank, General Motors, The Harvard Drug Group, the school district, McKesson Pharmaceuticals, Sears, Roebuck Co., Technicolor Video Services, Tower International, TRW Automotive, and Valassis. Of course, to supports these large employers, Livonia has a competent legal force comprising of intelligent, driven attorneys who act in their clients' best interest at all times. As well as these businesses, the legal force also serves as a wonderful support to local residents with their respective legal matters.

Some famous people who have called Livonia home at some point include Bernie Carbo, Chris Conner, Mike Donnelly, Judy Greer, Mike Modano, David Moss, Aaron Palushaj, Chris Tancill, and Jonathan B. Wright.

Overall, Livonia is a large suburb that provides residents and visitors with small town charm and a community-like spirit!

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