GRAND RAPIDS BANKRUPTCY ATTORNEY – FORECLOSURE & BANKRUPTCY
When you are facing financial problems and have questions about your bankruptcy options and foreclosure in the Grand Rapids area, it is important to have the representation of a good bankruptcy attorney. Krupp Law Offices P.C. has been providing quality bankruptcy representation for over 85 years. If you are facing financial problems or have questions about bankruptcy and foreclosure, call the bankruptcy attorneys at Krupp Law Offices P.C. for a free phone consultation. During your phone consultation, our attorneys will provide you with immediate answers to your questions and schedule an appointment with one of our bankruptcy attorneys. Call Krupp Law Offices P.C. at 616-459-6636.
FORECLOSURE AND BANKRUPTCY IN MICHIGAN
There are two ways for a mortgage company to foreclose on a property in Michigan, judicial foreclosure and foreclosure by advertisement.
The first and least common is judicial foreclosure. This is foreclosure using the court system. Judicial foreclosure is typically done if there are title problems or if the mortgages do not have a provision allowing for foreclosure by advertisement. The process is similar to a normal collection law suit. A complaint is filed with the court. If it is not answered then the person is defaulted in 21 days and there is a 21 day appeal period. If the complaint is answered it can take months and months (even over a year) to complete a judicial foreclosure.
The second and most common method of foreclosure is foreclosure by advertisement. First, the mortgage needs to have a provision that allows foreclosure by advertisement. Most mortgages contain this provision. The mortgage company must give notice of the default and publish a notice for 4 weeks. Most companies advertise for five weeks so that there is not a procedural problem. At that point the home is sold at a “sheriff’s sale”. Anyone can bid, but usually the only bidder is the mortgage company because the property is worth less than the mortgage. At this point there is a sheriff’s deed that provides that the owner has a redemption period of six months to a year to redeem the property. The time period is based on the size of the property. If the property exceeds 4 acres the redemption is one year. If the property is smaller, the redemption period is 6 months. During this time period the owner can occupy the property without making payments. At the end of the redemption period, if the property is not redeemed, the mortgage company is the new owner. If the house is not vacated at that point, the mortgage company must file a landlord tenant eviction proceeding to remove the occupant of the property. This usually takes an additional month.
Usually the mortgage company doesn’t start foreclosure proceedings for a period of three months. In total, an owner in foreclosure can occupy the property from 8 months to fourteen months before being required to move. During this time, there are no payments being made or taxes being paid.
A person can stop a foreclosure proceeding by filing chapter 13 bankruptcy proceeding before the sheriff’s sale. After the sheriff’s sale it is too late to file bankruptcy and save the home.
If there is no deficiency owed on a foreclosure by advertisement. If there is a second mortgage, that mortgage becomes an unsecured debt after foreclosure of the first mortgage. They can sue you for the debt if it is not paid.
GRAND RAPIDS BANKRUPTCY & FORECLOSURE ATTORNEY
If you are facing financial problems or forclosure, a good bankruptcy attorney is not optional, it is a requirement! Our bankruptcy attorneys can answer your questions with straight talk. Having the right bankruptcy attorney on your side can relieve your stress during difficult financial times. Our bankruptcy attorneys have over 85 years of bankruptcy experience. We can provide you with excellent bankruptcy representation.
Krupp Law Offices P.C. is located in downtown Grand Rapids, Michigan and has the right bankruptcy attorney for you. We represent clients in all bankruptcy matters throughout West Michigan, including the cities of Grand Rapids, Holland, and Grand Haven, and the counties of Kent, Ottawa, Allegan, Barry, Newaygo, Montcalm, Muskegon, and Ionia.
Our office can help.
KRUPP LAW OFFICES P.C.
161 Ottawa NW Suite 201
Grand Rapids MI 49503