When do Michigan lenders generally pursue deficiency judgments?

Chapter 451 of Michigan Compiled Laws states that Michigan lenders are allowed to pursue deficiency judgments against a homeowner after the home has been sold. In general, a Michigan lender will pursue a deficiency judgment in the event that a home is sold at a public sale for less than the amount that the borrower owes the lender.

When pursuing deficiency judgments, Michigan lenders must file the appropriate legal forms.  In the event that a deficiency judgment is filed against you by a Michigan lender, you may claim that the property was sold at less than fair market value as a defense to the deficiency judgment.

Homeowners in Michigan who are facing foreclosure need to understand their rights under Chapter 451.  Sufficient notice must be filed by the Michigan lenders, a foreclosure sale must be advertised and best effort made to cover the outstanding mortgage must be documented.

If pursuing a deficiency judgment, Michigan lenders are required to notify the homeowner as well as the court.  The homeowner has the right to seek legal assistance to help mitigate or eliminate their liability under the deficiency judgment rules.

If you or someone you know is facing foreclosure, you need to understand about deficiency judgments. Michigan lenders who are foreclosing on a property have every right to request a deficiency judgment if your property is sold at a public sale for an amount that is lower than what is owed.  This can create an additional financial hardship for those who have lost their homes to foreclosure and are now facing a deficiency judgment.