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State Of Michigan Mortgage Foreclosure Article
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Mortgage Foreclosure Sale
from:A mortgage foreclosure sale is a sale in which a homeowner’s home is sold because it was foreclosed or repossessed because the loan was in default. Unfortunately, today many homes are being repossessed due to loans that are not being paid as promised at the time of loan closing. The state of the economy, rising interest rates and the high cost of homes are being attributed to the large number of homes that are winding up in a mortgage foreclosure sale.
When a mortgage goes into default, it’s because the borrower has not made their payments as required. The bank or lender will usually not start foreclosure proceedings until 3 consecutive payments have been missed. Even then, the bank usually will try to contact the lender to make some sort of payment arrangements or see what the problem is. A bank usually doesn’t want to have to deal with a mortgage foreclosure sale anymore than the borrower does. A mortgage foreclosure sale involves a lot of paperwork, time and legal costs. Banks also do not want a REO (Real Estate Owned) on their books, as they usually lose money as well. In addition, the borrower not only loses their home but will have a poor credit rating for a few years after they’ve lost a home to a mortgage foreclosure sale.
There are a couple different types of mortgage foreclosures, depending on your state of residence. A judicial foreclosure or foreclosure by judicial sale, although only required in certain states, is available in all the states. This type of mortgage foreclosure sale involves having the property sold under the supervision of a court. The proceeds of the sale will go to pay off the mortgage first, then to any other lien holder and then the borrower, if there’s any money left. In this type of foreclosure sale, all parties must be notified of the sale.
Another type of foreclosure is foreclosure by power of sale. This type will usually be specified on the mortgage documents. In this type, the mortgage holder (bank or lender) can sell the property without first going to court. It’s quicker than the judicial sale, but the money is distributed in the same manner.
Strict foreclosure is a type of mortgage foreclosure sale that is available in only a few states. The borrower has a legal suit brought against him demanding that the mortgage be paid within a certain amount of time. If the borrower fails to do this, the mortgage holder gets title to the property and can do whatever they want with it, with no obligation to sell if they choose not to sell. Strict foreclosure was the first and original type of mortgage foreclosure.
State Of Michigan Mortgage Foreclosure News
Bill: Give tax break on foreclosure settlements
A Michigan senator wants to give more tax breaks to homeowners who were wrongfully foreclosed on and received settlement money — while halting tax breaks to banks that paid the settlements.
Read more...Report shows West Michigan foreclosure rates improving, but see why housing counselor remains wary
“We are still dealing with foreclosure numbers that are decimating our communities,” said Tracie Coffman, financial counseling manager for Home Repair Services.
Read more...State alleges man posing as mortgage modifier charged fees and did nothing
LANSING (AP) — State authorities are accusing a Detroit-area man of fleecing people out of $800,000 by posing as someone who could modify their mortgages.
Read more...Complaint filed against Justice Hathaway
A formal complaint against Justice Diane Hathaway has been filed with the state Judicial Tenure Commission, 7 Action News has learned.
Read more...STUDY: One in Three Homeowners Owes Bank More Than Home is Worth
Almost one third of homeowners who have a mortgage owe more to the bank than their home is worth, according to a new report.
Read more...3 Consecutive Quarters of Mortgage Employment Growth
DALLAS, May 21, 2012 /PRNewswire/ -- Mortgage industry staffing has expanded each of the past three quarters, according to the First-Quarter 2012 Mortgage Employment Index from Mortgage Daily.Hirings outpaced ...
Read more...GUEST OPINION: Settlement money needed to end foreclosure crisis
Despite predictions that 2012 may see record numbers of foreclosures after the worst foreclosure crisis since the Great Depression, politicians and special interests have their eyes on raiding Michigan’s $97 million share of the recent National Mortgage Servicer Settlement intended to help deal with this crisis.
Read more...Most Underwater Homeowners Still Paying Mortgages
Nearly a third of homeowners with mortgages owe more than their houses are worth, but most are still making their monthly payments on time.
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