Every state has its own foreclosure process. In Michigan, specific steps must be taken by your lender to begin and proceed through the foreclosure process. Generally, when you fall four months in arrears on your mortgage, your lender will begin the process of foreclosure. If you reach the sixth month without making payments, your home may be sold through a public auction or sale by the sheriff. 

The timeline of the process begins after your first missed payment. By making contact with your lender, you may be able to discuss options. By the 45^th day, your lender must provide you with a single representative to deal with and provide written notice of your delinquency and options for loss mitigation. From the 45^th to the 121^st day, you can work with your lender for potential options, such as a loan modification or workout plan. On the 121^st day, if all attempts to resolve the matter have failed, a sale date of your home is scheduled. Once it is held, your “redemption” period begins in which you will have a certain time period to redeem the property by paying whatever amount was bid at the sale plus fees and interest. 

Defenses to foreclosure can include:

• Loan modification or other options available to you from your lender during the foreclosure process.
• Deed in lieu of foreclosure. This involves deeding the home back to the lender without going through a foreclosure.
• Short sale. This involves selling your home for less than what is owed to your lender.
• Bankruptcy.