Legal Question in Real Estate Law in Michigan

Fishy Foreclosure

We are in receipt of a summons to appear in court on December 20, 2001, to evict us from our home because a redemption perid is up following foreclosure. On Feb. 9th we were sent a paper stating the intended mortgage sale was scheduled for February 28th. We proceeded to send them a certified check for $3900.00 in good faith of paying the money past due. On March 20th we received a letter from the mortgage company stating the Assignment, Sale, or Transfer of Servicing Rights was now with another company. We assumed that the money had been applied and waited to hear from the new company. On March 26th the money was returned to us by the orginal mortgage servicer saying they could not process it, stating the foreclosure process had already began (NOT that it had taken place). On April 25th,we received a letter from the NEW mortgage company stating they were now servicing our loan. On June 6th we received a letter from the NEW mortgage servicer stating we needed

$10,744.72 to bring the loan current. There was NO mention of any foreclosure sale EVER happening. It did state that if it was not brought current in 30 days that foreclosure would BEGIN. Can we keep our house?


Asked on 12/18/01, 7:32 pm

1 Answer from Attorneys
Don Darnell Darnell & Lulgjuraj, P.C.

Re: Fishy Foreclosure

It's hard to tell from the facts presented. The rule is that once foreclosed you have six months to redeem - and this means to pay the entire balance of the note, not the amount in arrears. Its sounds like there was a foreclosure on behalf of the bank and that the second bank possibly made a mistake and did not know that it was in foreclosure. Regardless, if they hold the note now and they made an offer to remedy past due payments, and if you accept with payment, I beleive that they would be stuck with it. You might need a lawyer to read thier statement and carefully draft the acceptance letter.

Good luck to you.

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Answered on 12/18/01, 8:45 pm


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