Best Mortgage Lawyers in Ann Arbor

About Mortgage Law in Ann Arbor, United States

Mortgage law in Ann Arbor, and more broadly in the state of Michigan, governs the creation and enforcement of a mortgage. It includes various aspects such as rights and obligations of the borrower and the lender, foreclosure process, and regulation of mortgage services. Laws at both the federal and state level (including the Truth in Lending Act, Real Estate Settlement Procedures Act, and Michigan's Mortgage Brokers, Lenders, and Servicers Act) all play a role in structuring the mortgage law environment in Ann Arbor.

Why You May Need a Lawyer

An experienced mortgage lawyer can be invaluable in several scenarios. These may include;

• If you are buying a property and need help understanding the mortgage agreement’s conditions and terms.
• If you are faced with a foreclosure or seeking modifications in mortgage arrangements to prevent foreclosure.
• If you have issues with mortgage loan services in terms of payments and fairness in dealing with your mortgage.
• If you feel you've been a victim of predatory lending practices or fraud.

Local Laws Overview

Ann Arbor, like the rest of Michigan, is a lien theory state, meaning the property acts as security for the underlying loan. The document that places the lien is called a mortgage. However, in terms of foreclosure, Michigan operates as a title theory state. This implies lenders may commence foreclosure under a power of sale clause without the courts' intervention.

Frequently Asked Questions

What are the foreclosure procedures in Ann Arbor?

In Michigan, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial procedure. In most cases, mortgage lenders opt for the non-judicial route which involves the property being sold without court supervision.

What is the redemption period in Michigan's foreclosure law?

The redemption period in Michigan typically gives homeowners up to six months to redeem their property after a foreclosure sale by paying off the amount of the mortgage, plus foreclosure costs and interest.

What are the borrower's rights during a foreclosure?

In Michigan, the borrowers have a range of rights before and during the foreclosure process, including a notice of the lender's intent to foreclose, a reinstatement period, and the right to redemption.

Can I get a loan modification to avoid foreclosure?

Yes, loan modification is a viable option to evade foreclosure. It involves the lender altering the terms of your loan to make the payments more manageable.

What is the role of a mortgage servicer?

A mortgage servicer is the company that handles the day-to-day administrative tasks of your loan, including receiving and tracking payments, managing escrow accounts, responding to borrower inquiries, and initiating foreclosure in case of default.

Additional Resources

Several resources can assist with understanding mortgage law in Ann Arbor. These include:

• The Michigan State Housing Development Authority (MSHDA): Provides financial and technical assistance through public and private partnerships.
• The U.S. Department of Housing and Urban Development (HUD): Offers advice and guides on various housing issues, including buying a home, owning a home, avoiding foreclosure, and a list of HUD-approved housing counseling agencies in Michigan.
• Legal Services of South Central Michigan: Provides free legal advice and representation to low-income individuals and seniors.

Next Steps

If you need legal advice or assistance with a mortgage in Ann Arbor, consider consulting with a reputable mortgage attorney in the area to review your case. Do your research, ask for referrals, or consult local resources to ensure you engage with a licensed and experienced professional. Remember that although this guide provides important general information, it does not replace professional legal advice. Thus, it is important to consult a professional for your specific situation.