What is Foreclosure in Saginaw, Michigan?

Find the right Foreclosure Bankruptcy attorney in Saginaw, 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 Saginaw, 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 some states, original mortgages are "non-recourse loans," meaning that the lender can only recover ownership of the house in the event of default. If the house is now worth less than the balance of the mortgage, the lender has to take the loss. You should speak with a Saginaw, Michigan lawyer to see if this state is one of them. However, it is almost always the case that this protection does not apply 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. You should remember that banks in Saginaw don't want your house. While the foreclosure process can be devastating for the homeowner, it's no walk in the park for the bank, either. They expected to make a profit through interest on the loan paid over time, and foreclosure is a last resort, allowing them to cut their losses and move on. If you are forthright with them, lenders will typically try to accommodate your changed financial situation, to avoid a default on your part, and the necessity of foreclosing on their part.

If you can't work anything out with your lender, or have become completely unable to make any mortgage payments, a "short sale" might be a good option. This allows you to sell your house for whatever price it can get, and hand the proceeds over to the lender. If the sale price is less than the balance of the loan, the rest of the debt 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 Saginaw, Michigan Attorney Help?

If you are faced with the possibility of foreclosure in Saginaw, Michigan, an attorney might be able to help. At the very least, he or she can advise you of your legal options.

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Life in Saginaw

Saginaw, Michigan is a city in Saginaw County. It is the county seat. As of 2009, it has a population of about 55,000, down from nearly 62,000 in the year 2000.

The area now called Saginaw was inhabited by Native Americans for thousands of years before the arrival of European settlers. French traders and missionaries were the first Europeans to explore the area, arriving in the 1600s. The first permanent non-native settlement was established in 1815, and, like many early settlements in the region, served as a trading post.

Unfortunately, Saginaw has not been spared the economic hardship that has befallen much of the Midwest in recent decades. It has a high crime rate, and nearly 30% of the population lives below the poverty line.

Nonetheless, Saginaw is still a vibrant community, populated by thousands of people who love it. This shows in its locally-owned businesses to which customers are fiercely loyal, and entertainment venues featuring local artists.

Saginaw, Michigan also has a legal community that should be able to help a resident of the area with virtually any legal issue they're likely to face. If you live in Saginaw, Michigan and need legal advice, you should contact a Saginaw, Michigan attorney quickly.

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