Foreclosed homes in Michigan are dispensed under both the judicial and non-judicial foreclosure process
. In a judicial process the lender files a complaint against the borrower who has defaulted on their loan. Should the court decide that the claim is valid the judgment will be for the entire amount owed as well as the foreclosure processing costs. The court will then authorize a sheriff's sale, which is an auction that is open to everybody and held in a public place. On the other hand a non-judicial foreclosure takes place without court intervention. When the borrower defaults, the lender will simply issue a Notice of Default letter indicating a period given to the borrower to settle his debts. This notice is also public record and after the time has elapsed, the lender will also offer the property in an auction.
Some Quick Facts Surrounding the Sale
The leading security instruments in question during the sale of foreclosed homes in Michigan include the deed of trust and mortgage. The pre-foreclosure period usually lasts for 60 days but can also be as short as 30 or as long as 90 days depending on whether the foreclosure is judicial or non-judicial. Buyers always reserve the right to redeem their property in all types of foreclosures.
Foreclosed homes in Michigan usually go the route of non-judicial foreclosure and unless the deed of trust has a power of sale section or clause that specifies the terms, place and time of sale, the non-judicial process usually follows a single path. The publication of notice of sale will run in a newspaper for four weeks. The same notice will be posted on the property for a minimum of 15 days after first publication. The notice will indicate the names of the parties to the loan, a detailed description of the home, the terms governing the sale, the schedule and venue of the sale.