The first month missed payment will likely result in a letter or phone call from the mortgage lender regarding delinquent status.

Attend to inquires from the mortgage company to discuss reasons for the delinquency, be frank and open since regular communication is important.

Correspondence informing of delinquent amount with 30 days to bring the mortgage current. This is called a Demand Letter or Notice to Accelerate. If the amount specified isn't paid by the deadline the mortgage company may begin foreclosure proceedings. They are unlikely to accept less than the total due with out prior arrangements. There is still time to work out a payment arrangement with the mortgage company.

Thirty days have now passed since a Demand Letter was received or four months have passed. Without payment in full or payment arrangement the case will be handed over to the company's attorneys for initiating action. The borrower will incur ALL legal fees from this point forward.

In Michigan, an attorney for the lender will schedule a Sheriff Sale. This is the actual date of foreclosure. The homeowner is notified of this date by mail and a notice will be taped to the front door. This is NOT a move-out date! The Sheriff Sale will be scheduled about six weeks after the attorney receives the file. Homeowners have up until this date of sale to workout arrangements with the mortgage company or to pay the total amount owed (aka reinstatement amount).

 

This time occurs after the sale. Michigan law requires this period to be no less than 30 days and no more than one year. A majority of redemption periods last six months provided the home is occupied.