Detroit Foreclosure Laws & Lawyers

The national economic recession has hit Detroit hard.  Along with rising unemployment and declining jobs, Detroit’s foreclosure rate continues to be higher than the national average.  About 6,300 new foreclosures were filed in the Detroit metro area in March of 2009, creating a foreclosure rate close to 1 in every 270 homes in that month alone.  Overall, 1 in every 136 homes in Michigan are facing foreclosure in 2009 thus far.

Detroit Foreclosure Laws

Detroit foreclosures can be judicial or non-judicial.  The Detroit foreclosure laws are set by the state of Michigan, and the total timeline is relatively short compared to the rest of the country.  Therefore, it is important that Detroit homeowners be aware of foreclosure laws and understand how to respond if faced with a foreclosure action. 

Here is a summary of Detroit foreclosure laws:

Foreclosure Alternatives for Detroit Homeowners

Although no one wants to lose their home to foreclosure, sometimes it is just financially unfeasible to continue making mortgage payments for reasons of unemployment, medical debt, or other emergencies.  In some cases, a lower mortgage payment may be the best option for the borrower.  Below are some alternatives to losing a home to a foreclosure auction and facing bad credit issues for years to come.

Loan Modification – If the borrower has a regular income and can continue making lower monthly payments, a loan modification may be the best answer.  A loan modification could lower the interest rate, extend the total time to pay the loan, or even allow forbearance on mortgage payments for a short amount of time.

Deed in Lieu of Foreclosure – Rather than face an expensive foreclosure and potentially lose money, a lender may be willing to accept a deed in lieu of foreclosure.  That means the borrower and homeowner turn over the title of the property to the lender and walk away from the loan without owning anything further.

Short Sale – If it is not possible to keep the home, a lender may be willing to allow the owner to sell the home at lower market value and accept the amount short of the total amount owed on the mortgage.  This saves both parties from expensive foreclosure and the borrower may walk away without harm to credit.

Detroit Foreclosure Help

Detroit foreclosures, though on a declining trend, are still some of the highest in the nation and 12 percent higher than the same time last year.  With such a short span of time from the initial foreclosure filing to the auction and sale of a home, it is important for a Detroit homeowner to find professional help.  A certified Detroit foreclosure lawyer will usually provide a free initial consultation and can offer the best advice on a strategy to avoid foreclosure.

• If you may be facing foreclosure or already in the process, Consult Your Case for Free with a local certified Foreclosure Attorney in Detroit to see your best options you have available to avoid Foreclosure.