Michigan or the Wolverine State can well be the location of the home of your dreams. So, would you not like to learn more about home concerns and the associated mortgage prospects in the state? The right information to clear up queries in this regard and throw light on the important facts to be aware of before venturing into any transaction involving a home/property in the state, has been provided here.

• Mortgages in Michigan are primarily governed by state statutory and common law while mortgagees are regulated by federal or state law or agencies (just as mortgages in several other states).
  
  The two mortgage statutes of Michigan are:
  
  1. Mortgage Bankers, Lenders, and Servicers Licensing Act, P.A. 173 of 1987 (MBLSLA):
     This statute deals with first lien position mortgages. The Act is meant to define and regulate mortgage brokers, lenders and servicers. The powers and duties of the financial institutions bureau and certain public offers and agencies are prescribed by this Act. The object is also to provide for promulgation of rules and provide remedies and penalties.
     
     
  2. The Secondary Mortgage Loan Act, P.A. 125 of 1981 (SMLA):
     This statute deals with lien positions that are other than first position like second or third mortgages. The Act is meant to regulate secondary mortgage loans. It prescribes powers and duties of certain state agencies and officials; to require certain fees. The object is to provide for the establishment of a revolving fund and for the promulgation of rules as also to prescribe civil fines and penalties.
  
  
  
• As per a recent ruling of a U.S. District Court the Michigan state laws will not be applicable to the mortgage subsidiary of a national bank. Moreover, the court further ruled that the mortgage laws of the state of Michigan are preempted by the National Bank Act.
  
  
• One may be lagging behind on one's mortgage payments and yet wish to retain one's property at the end of the bankruptcy process. In such case, a chapter 13 bankruptcy can be the only option available. This will allow one to make up the overdue payments over time and bring forth restoration of the original mortgage agreement. This applies similarly in case of Michigan or any other state.
  
  
• A mortgage in the state may be a "purchase money mortgage" for the purpose of purchasing a dwelling occupied by the purchaser. In such case, under anti-deficiency laws, the purchaser is not to be held responsible for any deficiency on the part of the lender and can only recover the property and proceeds of a subsequent sale.
  
  
• Borrowers in the state have right of redemption. However, approval for deficiency judgments to be allowed varies.
  
  
• In Michigan foreclosures are mainly handled out of court. This is because though court foreclosures are also permitted in Michigan; most mortgages here contain a clause which enables a lender to sell a property out of court on default by the borrower. Typically, foreclosures take around 8 months to get completed. However, the process may also be completed within 3 months or it may even spread over 14 months depending upon the length of the redemption period.
  
  
• In the state both judicial and non-judicial foreclosures are available i.e. lenders in Michigan may foreclose on mortgages in default using either a judicial or non-judicial process.
  
  Judicial foreclosure is characterized by a court decreeing the amount of the borrower's debt and giving out a short time to pay. The court will issue a notice of sale of the property in case the borrower fails to pay within that specified time period.
  
  Non-judicial foreclosure is used when a power of sale clause exists in a mortgage/deed of trust. This "power of sale" clause pre-authorizes the sale of property to pay off the balance on any mortgage loan in case of their default. The power given to the lender by the "power of sale" to sell the property may be executed by the lender or the trustee (representative of the lender). The regulations relating to this kind of foreclosure process are delineated by the specified "Power of sale Foreclosure Guidelines".