Can a credit union foreclose in Michigan?

Regarding a Michigan foreclosure, a credit union can foreclose by advertisement on a residential property if it follows the new restrictions.  These restrictions include the following conditions:

• The notice of being behind on payments has been sent to the mortgagor.
• After this notice has been sent, the time period for a housing counselor to notify the designated contact person of the mortgagor has expired.
• If it has been over 14 days since a notice was mailed to the mortgagor, the mortgagor has not requested a meeting with the designated contact person, and over 90 days have passed since the notice was mailed.
• The mortgagor and mortgagee have not agreed to modify the mortgage loan and the mortgagor is in default under the modified agreement.

If these conditions have occurred and have been met by the credit union, then the credit union can foreclose in the state of Michigan.  However, if these conditions have not occurred and have not been met by the credit union, the credit union cannot legally go through with the foreclosure. 

If the credit union attempts to do so, this is considered as an illegal home invasion.  As a result, the homeowner can contest the foreclosure and has the potential to successfully sue the credit union for actual damages if the foreclosure has already taken place and/or have an unconscionable contract rescinded if the foreclosure has not already taken place.

Talk to a Michigan foreclosure attorney for a case review and to attain legal advice regarding your options under Michigan foreclosure laws.