As an appraiser doing more foreclosures than sales, I often empathize with the owner and offer information which may be withheld by the lender or its attorney firm regarding the process. First, in Michigan following foreclosure, the borrower, by law, has a 6 or 12 month redemption period during which they may sell, redeem, or refinance the property depending on the property type. During that period, they legally also have the right to remain in the home. While adding to the difficulties of the lender, one can easily see why the lender and their attorney firm are not eager to educate the unaware borrower.
Often the borrower tells me they've called the attorney firm and they are working things out for them. My response is that the attorney firm is interested in collecting full fee which is only attained by completing the full foreclosure process. Do NOT assume that the lender's attorney firm will work in your behalf.
Finally, I'm told the borrower has called the bank to no avail. Unfortunately, they have called the bank collection department which has a sole function of collecting past due payments. Again I suggest they contact the lender's loss mitigation office - the folks who have to deal with a negative equity property and dispose of it unless they can solve the problem before they get the home back by keeping the present owner in the home.
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