Michigan Notice of Intention to Foreclose and of Liability for Deficiency after Foreclosure of Mortgage
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Redemption Period ? starts day of Sheriff Sale -Six (6) months is most common. -If the amount claimed to be due on the mortgage at the date of foreclosure is less than 2/3 of the original indebtedness, the redemption period is 12 months.
If a foreclosure is nonjudicial, the foreclosing lender must file a lawsuit following the foreclosure to get a deficiency judgment. On the other hand, with a judicial foreclosure, most states allow the lender to seek a deficiency judgment as part of the underlying foreclosure lawsuit.
Most foreclosures in Michigan are nonjudicial, which means the bank does not have to go through court. Judicial foreclosures are allowed, too. In a judicial foreclosure, the bank forecloses through the state court system.
Claiming potential proceeds begins with filing the below form 5743 Notice of Intention to Claim Interest in Foreclosure Sales Proceeds with the Foreclosing Governmental Unit (FGU) by the July 1 immediately following the effective date of the foreclosure.
600.5803 Foreclosure of mortgages. No person shall bring or maintain any action or proceeding to foreclose a mortgage on real estate unless he commences the action or proceeding within 15 years after the mortgage becomes due or within 15 years after the last payment was made on the mortgage.
After the foreclosure is completed, most tenants have protection from immediate eviction. Some have 90 days to find a new home after the redemption period ends. Others can stay in their home until the term of their lease ends.
If the court determines that the proceeds of the sale are insufficient to satisfy the judgment, the court may enter a deficiency judgment against the person who signed the written agreement to pay the real estate broker.
