Michigan, unlike most states, allows two forms of foreclosure.
Filing any chapter of bankruptcy, Chapter 7, Chapter 13, Chapter 11, stops either form of Michigan foreclosure.
Creditor’s choice, of course.
The cheaper way is foreclosure by advertisement, invariably in the Legal News, read by no one, except, people looking for foreclosure notices to solicit business. Realtors, bankruptcy attorneys, foreclosure scam artists.
The more expensive route is through the courts; filing a foreclosure lawsuit. Michigan mortgage companies rarely go this route.
Michigan foreclosure law changed in 2009, in favor of consumers. That law expired at the end of June, 2013.
Instead of just putting the foreclosure notice in the Legal News for four consecutive weeks, and posting a copy of same on your home, first, Michigan mortgage companies had to tell you that you had 14 days to request a modification.
Unfortunately, the vast majority of people miss this opportunity.
I think, because so many have either been rejected for, or are already in the process of, a mortgage modification application.
It is not clear from the initial foreclosure notice that you have to start over, and tell the mortgage company agent, designated in the notice, that you want a mortgage modification.
Merely responding yes, I want a mortgage modification, bought you an extra 90 days. There were other provisions, but, if no modification was reached, and the mortgage company had to agree, it was voluntary on their end, the old process resumed with the four weekly foreclosure notices in the Legal News.
The event noticed was the sheriff sale; the sheriff for the county in which the home is located conducts foreclosure auctions on a regular basis.