Michigan Foreclosure Process: Soup to Nuts

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1 Michigan Process: Soup to Nuts Presented By: Michael I. Rich, Esq. Michigan Michigan allows foreclosures by advertisement or by judicial action by advertisement has historically been the favored approach by lenders as it is usually quicker and less expensive (do not need to pay attorneys to go to court) Changes enacted in 2009, lengthened and made it more expensive to proceed to foreclose by advertisement. This has caused lenders to reconsider their best strategic options in the foreclosure process 2 Michigan Process Alternatives The most popular alternative to a foreclosure is a Deed in Lieu (DIL) of foreclosure When considering a DIL, the ability to pursue a deficiency and the condition of the title are most important 3 Michigan Process

2 Alternatives Deed in Lieu Many people are under the impression that if a DIL is accepted, the debt is wiped out While that may be the law in some states, it is NOT the law in Michigan Example: If the debt is $100,000 and the house is only worth $75,000, you may accept the DIL, and unless agreed to otherwise, pursue the $25,000 difference One caveat, there must be some consideration given to the Borrower for giving the DIL The Borrower is giving up their right to remain in the property through a foreclosure 4 Michigan Process Alternatives Deed in Lieu Best recommendation is to waive some portion of the deficiency in exchange for the DIL Waiving a small portion, should still leave the lender ahead, as they can save the cost of a foreclosure, eviction, and not worry about the property depreciating further due to a vindictive borrower Time is the biggest money saver, as the property may be able to be re-sold quickly and not have to wait for months while a foreclosure and eviction occur 5 Michigan Process Alternatives Deed in Lieu When a DIL is considered, title work should be obtained It is possible that since the mortgage was taken out, the property has been transferred into a Trust or someone has been added or deleted from title (marriage, divorce, death, etc.) Everyone that has an interest in the property needs to sign off on a DIL Dower rights apply in Michigan, so title that has a married man solely on title, still requires his wife to sign the DIL, as to her dower rights 6 Michigan Process

3 Alternatives Deed in Lieu If there is a junior lien holder, a DIL does not eliminate their lien Unless you can get them to agree to release their lien (not the indebtedness), you will still have to foreclose on the property to eliminate their interest 7 Michigan Process Alternatives Deed in Lieu Similarly, if there is a condo association or an IRS or Justice Department Lien, releases (Certificate of Non-Attachment from IRS) or a foreclosure will still be necessary, unless you wish to pay the lien 8 Michigan Process Alternatives Short Sales Short sales are another popular alternative to foreclosure While everyone knows a short sale is allowing the property to be sold without paying the lender s lien in full from the closing, there is the same popular misconception about the difference A lender may agree to release its lien on a property in exchange for some amount, but that does NOT automatically mean the rest of the debt goes away Similar to the DIL, you may work out a repayment for the deficiency or just agree that there is a deficiency 9 Michigan Process

4 Alternatives Short Sales When there are other liens on title, first mortgage holders are sometimes even asked to allow some payment to go to junior lien holders, in order to get the juniors to release their liens as well In those cases, it may be more likely to get a deficiency agreement, as the lender is paying other creditors on behalf of the Borrower 10 Michigan Process Alternatives Short Sales When considering a short sale, specific terms should be in the short sale letter Among these that the Borrower receives nothing from the closing; that any escrowed funds at the closing may NOT be returned to the Borrower, but must be surrendered to the lender; the amount, if any, that junior creditors may receive; that this is an arm s length transaction (the new buyer is not related to the Borrower); and the amount that will be credited on the loan. 11 Michigan Process Alternatives Short Sales You may consider a restriction against the Borrower remaining on the property for more than a limited time (up to 90 days) A violation of any of the above could result in any amount waived to be reinstated or for the lien to not be released 12 Michigan Process

5 Alternatives Foreclose or Not to Foreclose? An area that is getting more consideration is whether it is even worth foreclosing in the first place Property values have dropped so significantly, it may not be worth foreclosing The costs of foreclosing, eviction, trash out, carrying costs and then the costs of disposition, usually end up running over $10,000 Frequently the largest part of this is the property taxes, water bills and/or other utilities If the property cannot be sold for at least $10,000, it may be better to just sue on the Note or charge off the loan altogether 13 Michigan Process Alternatives Foreclose or Not to Foreclose? There is no requirement in Michigan that you must foreclose first, before suing on the deficiency The same analysis applies when considering foreclosing on a HELOC What is the Equity available if a senior lien would need to be paid off? If you are not likely to have a positive return, the foreclosure should not be pursued. 14 Michigan Process and Bankruptcy A bankruptcy filing can affect the strategy of foreclosure in numerous ways Did all borrowers file bankruptcy, or just 1 (some)? Did they file Chapter 7, 13 or even an 11 or 5? At what point did they file the bankruptcy, before sale, during redemption, before eviction? 15 Michigan Process

6 and Bankruptcy How do they plan treating the mortgage loan in bankruptcy? Have they filed before or is their first time? Was the bankruptcy filed primarily to stop/delay the foreclosure? 16 Michigan Process and Bankruptcy There are certain terms that have a different meaning in bankruptcy than in real estate or in common meaning Discharge Discharge in Bankruptcy means that the Debtor has been released of personal liability for the debt. The debt still exits, as does the lien. Some borrowers believe their property cannot be foreclosed because they obtained a bankruptcy discharge. Unless other relief from the bankruptcy stay is obtained, a lender must wait until the bankruptcy discharge is obtained to proceed. Some lenders are also confused as to how they can proceed after a discharge. 17 Michigan Process and Bankruptcy Surrender Surrender in bankruptcy means the Debtor is not going to try and keep the property Essentially if the property is to be surrendered, you should be able to get Relief from the stay You may then proceed with your state rights or foreclosure The surrender does NOT mean the bank automatically gets the property You must still go through with the foreclosure 18 Michigan Process

7 and Bankruptcy Many bankruptcies are filed to delay the foreclosure process Most are filed shortly before the scheduled foreclosure sale Bankruptcy law prohibits the continued efforts to collect on the debt Therefore, the foreclosure should not be adjourned, but canceled Unfortunately, if the Borrower then dismisses their bankruptcy, we must start all over 19 Michigan Process and Bankruptcy Chapter 7 In a Chapter 7, a trustee is appointed who is to determine if the borrower has any unsecured ured assets to be liquidated and have the proceeds distributed among the unsecured creditors Trustees have become less accommodating to secured creditors The Trustee can object to a motion for relief from the stay, (MFR), by claiming there is equity that could be recovered ed and distributed to unsecured creditors 20 Michigan Process and Bankruptcy Chapter 7 In backwards logic, if the lender has already gone to foreclosure sale, and bid a deficiency, the Trustee believes they may be able to sell the property and obtain excess proceeds If a lender bid the full debt at the sale, then the Trustees usually believe there is no equity to be obtained and have not been objecting to the creditor s motion for relief from stay 21 Michigan Process

8 and Bankruptcy Chapter 7 For a borrower to keep their property in a Chapter 7, they need to reaffirm the debt Most debtors are reluctant to reaffirm mortgage debt because: property values are not yet stable; there is a potential for personal liability if the debtor later defaults; and borrowers know that creditors are reluctant to foreclose on a performing loan; 22 Michigan Process and Bankruptcy Chapter 13 In a Chapter 13, the debtor files a plan to pay creditors and provide for assets they wish to retain If they wish to keep the home, they must account for it in the plan Regular payments should resume plus some monthly amount towards the arrearage 23 Michigan Process and Bankruptcy Borrowers are almost always represented by an attorney If you wish to discuss a loan workout or mitigation, contact the attorney directly Recommend that if a repayment plan is worked out, that language be put in, that if the plan is broken, the original loan terms remain 24 Michigan Process

9 and Bankruptcy HELOC s and other junior liens are now eligible for lien stripping in bankruptcy If there is no equity at all to be used towards payment of a junior lien, then the Bankruptcy Court may consider the HELOC to be an unsecured loan and essentially order the lien be released from the property 25 Michigan Process and Bankruptcy There are also repeated attempts to change bankruptcy law to allow cram downs This is essentially forcing lenders to write down the amount of their mortgages to the current market value, and the rest is discharged (charged off) Disputes as to valuation are the inevitable result if those changes are made 26 Michigan Process Once it has been decided that a foreclosure needs to proceed, the decision as to how to proceed needs to be made 27 Michigan Process

10 Factors that affect the decision as to what is the best course of action Status of title; Size of the property; Occupancy status; Bankruptcy history; Likelihood of pursuing a deficiency; Other creditors 28 Michigan Process Title Before foreclosing title needs to be reviewed for the following Verify the priority of the lien (senior, junior, etc.), Whether the property more than 3 acres; Whether a homestead is filed on the property; Who the current owners are; and To make sure the mortgage is properly perfected. 29 Michigan Process Senior Lien considerations When the title is reviewed, the lien positions need to be determined If there is a question, as to priority, then care should be taken as to whether a judicial foreclosure should be filed If the lender believes they are in 2nd position, but find out they are in first position, they may not wish to foreclose judicially They would need to serve the other lien holder and allow them to counter sue to show they deserve to be in first position 30 Michigan Process

11 If we are not in the position we expected to be, we may wish to proceed to proceed judicially to determine the priority This may be especially true when we believe we are in first, but something happened that may jeopardize our lien position 31 Michigan Process Name the other lien holder and have the Court grant an Order that our lien has priority If we expected to be in 2nd and the title work shows we are in first, we may want to wait on a judicial action and let the other lender start the fight Michigan does NOT currently follow equitable subrogation Equitable subrogation is when a first mortgage is refinanced, and they neglect to get a subordination from the second lien holder 32 Michigan Process The 2nd is not hurt by the refinance, so the refinanced first mortgage is still determinedtobeinfirst position Even in the states that allow for equitable subrogation, major complications arise if the refinanced first mortgage is for more money or has other terms that could jeopardize the second mortgage from being paid back 33 Michigan Process

12 Michigan is a race/notice state Whomever records their lien first (wins the race to the court house), has priority UNLESS they had notice of another lien that was intended to be superior This eliminates the problem of mortgages being recorded out of order, as it is usually obvious which is intended to be first and which second Notice has recently been expanded to include information from credit reports Information on loan applications can be considered notice 34 Michigan Process Residential property over 3 acres has a 12 month redemption period If a homestead has been filed, then to foreclose by advertisement would require following the Michigan modification process (discussed later), which could delay the foreclosure by another 3 months 35 Michigan Process Combined these eliminate the advantage of a faster foreclosure and increase the likelihood of wanting to foreclose judicially 36 Michigan Process

13 If the property has been transferred to a 3rd party, you need to also check their bankruptcy status If the mortgage has not been properly perfected (errors in the legal description, not properly executed (missing a spouse s signature), then the mortgage needs to be corrected 37 Michigan Process It may be possible to do this by an Affidavit of Scrivener s Error, but sometimes a Declaratory/Quiet Title action is needed Since a Court filing is proceeding anyway, it may be best to foreclose judicially, or at least leave that option open, by filing for the judicial foreclosure with the Declaratory/Quiet Title action If a deficiency is going to be pursued, it may be obtained as part of the judicial action with no additional work 38 Michigan Process All judicial foreclosures have a 6monthredemptionperiodthat cannot be accelerated by abandonment s by advertisement usually have a 6 month redemption period, but can be 12 months. They may be accelerated to 1 month if abandoned, but the IRS always gets a 4 month (120 days) redemption period. If the property has been abandoned, then foreclosing by advertisement may be shortened by abandonment. 39 Michigan Process

14 One of the more interesting considerations occurred with the 2009 law changes If the property has a homestead filed on it, then you must either foreclose judicially or offer the Borrower to go through the Michigan modification process (discussed later) 40 Michigan Process If there is a question as to whether there is equity, determine whether the first has started foreclosure You may wish to foreclose on the second and then see if you can sell it for enough to pay off the first plus recoup something on the second If not, then you are only out the costs of the foreclosure While increased monitoring of the asset is necessary, it may be smartest to NOT advance funds to pay off senior liens until you must 41 Michigan Process If the first has already gone to sale, and there is equity, will they consider assigning the Sheriff s Deed interest? or will the first require you to pay them off and do your own foreclosure? If there are any issues as to the perfection of your mortgage, having the senior lien interest assigned to you could eliminate the need to file the Declaratory/Quiet Title action 42 Michigan Process

15 Junior Lien considerations Valuation again comes into play. If the property is worth significantly more than what you are owed, then you may want to contact the junior lien holder and see if they wish to buy your lien. Selling the Note (without recourse) and assigning the Mortgage could assist the 2nd and result in you being paid off sooner. 43 Michigan Process If there is a junior lien and there are deed-in-lieu discussions, then a foreclosure may be required. A deed-in-lieu does not eliminate junior liens. 44 Michigan Process Bid Amounts bid amounts: The amount realized at sale is applied against the amount owed and determines the deficiency. Example: If you are owed $100,000, and bid $80,000, but a 3rd party bidder pushes the winning bid to $85,000, the deficiency amount is $15,000. Before bidding, a valuation should be done of the property. 45 Michigan Process

16 Bid Amounts The bid should have some correlation to the value of the property UP to the amount that is owed on the debt. If the property is worth $100,000, and you are owed $100,000, you do not need to bid the whole $100,000. You may discount the redemption period, the costs expected to be incurred in disposing of the asset, etc. If you bid too low, a Court could rule you did not bid a fair amount and rule you are not entitled to ANY deficiency. No rules have been established, but 80% of current market value is usually acceptable. 46 Michigan Process Bid Amounts Some lenders bid less in the hopes of attracting 3rd party bidders This results in getting funds immediately, but again may negate the ability to get a deficiency If no 3rd party bids, the borrower has a lower amount for which they may redeem the property If that is your intent, that is fine, but realize, you are not being paid in full and the borrower is keeping the property in this instance 47 Michigan Process Redemption Periods In judicial foreclosures, ALL redemption periods are 6 months All commercial property has a 6 month redemption period, whether foreclosed by advertisement or judicially In foreclosures by advertisement, residential redemption periods very from 1 month to 12 months Most are 6 months The redemption period is 12 months if the property being foreclosed is residential property over 3 acres OR if more than 1/3 of the original principal balance has been paid off 48 Michigan Process

17 Redemption Periods History of the redemption rules: Anyone owning more than 3 acres was a farmer. Farmers needed to wait for the crop harvest in order to pay the bank. For the first time, there is finally proposals to eliminate this exception to the redemption rules. 49 Michigan Process Redemption Periods If someone had paid off more than 1/3 of their original loan amount, they had usually lived there at least 15 years Something had gone wrong but it was assumed that property appreciation combined with principal reduction would leave significant equity in the land The bank could wait for the borrower to straighten their finances out or sell the property 50 Michigan Process Redemption Periods There were no loans such as HELOC s or reverse mortgages. Now, a lender cannot look at the face value of the mortgage and the current principal balance and determine if more than one third has been paid down The loan history should be reviewed to see if the entire loan amount had ever been borrowed. If not, it would be whether 1/3 of the maximum amount drawn was paid off 51 Michigan Process

18 Redemption Periods If a property is deemed abandoned, the redemption period can be accelerated to 1 month Remember the IRS must always gets a minimum 120 day redemption period If the borrower gets a longer time frame, the IRS also gets the longer time frame 52 Michigan Process Michigan Modification Procedure To foreclose an owner occupied, residential property by Advertisement, the following procedures are required: Mail a new notice, both by regular mail and certified mail return receipt requested, informing the Borrowers that they may contact a designated person at the lender to try and reach a mortgage modification instead of being foreclosed upon. For many lenders, determining and giving out contact information for a specific person may be the most onerous part of the new rules. The notice MUST include the name, address and phone # of a designated individual (not a group or a pseudonym) who has the authority to negotiate a modification AND can meet with the Borrower, potentially in the county where the property is located. Within 7 days of mailing the notice, a one- time notice informing the Borrowers of their right to contact the designee must be published. 53 Michigan Process Michigan Modification Procedure The statutes require the Borrower to contact the designee within 14 days and the Housing Counselor to contact the designee within 10 days after contact from the Borrower Therefore, if no one contacts the designee within the first 14 days, you may commence foreclosure It is our expectation that if a housing counselor has contacted the designee within 24 days of the letter, many courts will require the lender to go through the modification process Therefore, lenders may choose to wait to begin the foreclosure process until 24 days have elapsed 54 Michigan Process

19 Michigan Modification Procedure If the Borrowers, and/or a housing counselor on the Borrowers behalf, contact the designee to work out a modification within the 14 and 24 days respectively, of the letter being mailed, then foreclosure proceedings may NOT commence for 90 days from the date the letter wasmailed. The designee should then request financial information from the Borrowers in order to determine if they qualify for a modification. 55 Michigan Process Michigan Modification Procedure This information should be similar to that information used to currently underwrite a loan for the lender To use other criteria could lead to charges of bad faith by the lender There is nothing in the statues that dictate how fast the Borrowers must comply with the request or a penalty for failing to comply with the request 56 Michigan Process Michigan Modification Procedure Upon receipt, the designee is to calculate if the total housingrelated payments can be reduced to a 38% (or less) debt ratio to gross income Total housing related payments, include principal, interest, property taxes, insurance, association fees and apparently principal and interest on other liens on the property 57 Michigan Process

20 Michigan Modification Procedure Unless the loan is pooled for sale to a governmental entity or has been sold to a governmental sponsored enterprise, the lender s modification program MUST include one or more of the following in order to reach the targeted 38%: Interest rate reduction as needed, subject to a floor of 3%, for a fixedtermofatleast5years. Extend the amortization period to 40 years or less from the date of the modification. Deferral of some portion of the principal balance of 20% or less, until maturity, refinancing or sale. Reduce or eliminate late fees. 58 Michigan Process Michigan Modification Procedure If the loan was pooled or sold to the government entity or enterprise, then their modification program must be followed Nothing prohibits the lender and borrower from agreeing to a modification under different terms 59 Michigan Process Michigan Modification Procedure If the Borrower does not provide the requested documentation or does not qualify for a modification, the lender may proceed to foreclose after the 90 days If the Borrowers do qualify and the lender and they agree to a modification, the foreclosure will not begin unless the borrower does not follow the terms of the modification If the Borrower does not sign the modification within 14 days after it is sent to them, then foreclosure may begin after the 90 day period 60 Michigan Process

21 Michigan Modification Procedure If the Borrower qualifies for a modification, but the lender will not offer a modification in good faith, the lender may still foreclose, but must foreclose judicially after the90days Once the designee has received the information, they are to meet with the Borrowers within the 90 day time period If the meeting has not taken place, foreclosure proceedings are delayed until it occurs 61 Michigan Process Michigan Modification Procedure Common Questions Q: Can I send out the Notice letter and then start judicial proceedings if the Borrower responds? A: No foreclosure proceedings may commence for 90 days, after the letter is mailed, if the Borrower timely requests a meeting to discuss a modification. 62 Michigan Process Michigan Modification Procedure Q: The Borrower has broken previous workout agreements. Do I still need to follow the new procedure? A: If you wish to foreclose by advertisement, you must follow the new rules. If a new modification is reached and the Borrower defaults on the new modification within 1 year, then you may foreclose, without going through this procedure again. 63 Michigan Process

22 Michigan Modification Procedure Q: Can we keep our calculations and guidelines secret? A: The statutes REQUIRE providing the Borrower a copy of any calculations made by the designee and if requested by the Borrower, a copy of the program, process or guideline under which the determination of eligibility for a modification was made. 64 Michigan Process Michigan Modification Procedure Q: What are the penalties for non-compliance with the new rules? A: The Borrower may request a restraining Order stopping the foreclosure and making it convert to a judicial proceeding 65 Michigan Process Abandonment v. Vacant An area of significant confusion is whether a vacant property is abandoned Abandonment generally means the borrower does not expect to return to the property OR to exert any dominion over the property If the property is not being maintained (snow removal in winter, grass cutting in summer), utilities are off, mail is not being picked up, are all indications the property has been abandoned 66 Michigan Process

23 Abandonment v. Vacant These need to be balanced, by whether the type of property If this was a 2nd home loan (vacation property), it may be expected that it is vacant for long stretches of time Snow may not need to removed or grass cut Whether the property is furnished or not can often determine if it has been abandoned or not 67 Michigan Process Abandonment v. Vacant One area that causes lots of disputes is having the property listed for sale This usually indicates the borrower is continuing to exercise their dominion over the property Further complications arise when the listing agent is contacted and it is found the list price is less than what would be necessary to redeem the Sheriff s Deed 68 Michigan Process Abandonment v. Vacant Informing the realtor that you will not accept anything less than the full redemption amount and already have a new realtor lined up may result in them giving up and removing their sign Offering to list the property with them, should be contingent on getting them to have the Borrowers sign something stating the property has been abandoned 69 Michigan Process

24 Abandonment v. Vacant If a DIL has been accepted, but a foreclosure is still proceeding due to needing to eliminate junior creditors, abandonment becomes an issue When a DIL has been accepted, the lender is the owner. If the lender is now foreclosing, the lender has not abandoned their interest, so how can abandonment be done? The Borrower has given up their interest, but they conveyed it in the DIL, they did not voluntarily abandon it. It is possible no one would challenge the abandonment, but legally, it probably does not meet the rules. 70 Michigan Process Abandonment v. Vacant CASH FOR KEYS DURING REDEMPTION The goal of getting the property back as soon as possible in reasonable condition has led to an increase in offering cash to the borrowers to vacate before the redemption period expires. The closer to the end of the redemption period the less that is usually offered. 71 Michigan Process Abandonment v. Vacant Similar to earlier discussions, if there are junior lien holders, does a cash for keys eliminate the redemption rights of junior creditors? Anyone claiming by through or under the borrower has the right to redeem. 72 Michigan Process

25 Abandonment v. Vacant Considering the junior lien holder already has an interest in the property, the Borrower cannot shut off their rights with the cash for keys deed, anymore than they do with a DIL. All of the issues of a DIL should be taken into consideration on a cash for keys file 73 Michigan Process Short Redemptions The redemption amount is determined by the amount of the Sheriff s Deed plus filed Affidavits for amounts allowed to be advanced during redemption (taxes, insurance, senior liens, but not repairs or maintenance) A lender may agree to issue a redemption certificate for less than the full amount of redemption, which is similar to a short sale 74 Michigan Process Short Redemptions The major difference is that a short redemption has ABSOLUTELY NO EFFECT on the deficiency amount. The deficiency is determined at the Sheriff s sale, it is not affected by the price for which the property eventually sells. A short redemption is more akin to an REO sale. 75 Michigan Process

26 Short Redemptions Any difference between the Sheriff s Deed amount and the amount accepted for the redemption MUST be CHARGED OFF The same rules as to what should be in a short sale letter as to arms length transaction, how funds are to be disbursed, etc., should be in a short redemption letter 76 Michigan Process Property Taxes The terminology used in regards to Michigan taxes causes confusion. Taxes are categorized as: Current; Delinquent; Forfeit; and lost. 77 Michigan Process Property Taxes Taxes are generally assessed in July and December of each year On March 1 of the following year, the local municipality stops collecting the taxes (limited exceptions for Flint and Kalamazoo), and they are transferred to the county for collection At that point they are considered delinquent 78 Michigan Process

27 Property Taxes On the following March 1, if the delinquent taxes have not been paid, they are forfeited This results in additional penalties and an increase in the interest rate Notices will be sent to all parties with an interest in the property. They have until March 31 of the following year to redeem the forfeited taxes 79 Michigan Process Property Taxes If not paid by that time the property is lost with no further right to redeem (Wayne County usually accepts late redemptions in violation of state statutes) 80 Michigan Process Property Taxes Example: Taxes assessed July 1 & December 1, 2009 On March 1, 2010, the taxes were transferred to the county for collection On March 1, 2011, the taxes would be forfeited and the penalties and interest increase At some point we will receive a notice of the forfeiture. If we do not redeem the taxes by March 31, 2012, we are out The property reverts to the county free and clear of all liens 81 Michigan Process

28 Best Practices Vacant and abandoned property present a significant challenge to lenders until the property ownership is transferred back to the lender The property is not yet the lender s, but it is not secured You can try and accelerate the process via abandonment, but it still takes time Additionally, if the property is not maintained (lawn mowing) the city may maintain it and assess the costs against the property for which the lender will ultimately be responsible 82 Michigan Process Best Practices Legally, the lender has limited options While a mortgage contains clauses that the Borrower is to maintain the property and if they do not, the lender may, the mortgage is extinguished by the Sheriff s Deed and is no longer controlling It is recommended that if the property is secured, have a 24/7 number posted to allow access to those legally entitled to access the property Additionally, instead of changing all the locks, secure the property and only change 1 lock, so the borrower can still get in if they have a key 83 Michigan Process Best Practices Many cities are starting to enact Registration rules If you begin a foreclosure or go to Sheriff s sale or when the foreclosure is complete, you may be required to register with a local entity 84 Michigan Process

29 Best Practices Turn that to your advantage by asking them to notify you if the property is not being maintained and you will arrange for the grass cutting That may save significantly compared to the amount the municipality charges 85 Michigan Process Best Practices Contact neighbors and ask them to contact you if the borrowers vacate the property The neighbors do not want a vacant blighted property next to them, so they may assist you You may also get leads on potential buyers 86 Michigan Process Questions & Answers Any questions? 87 Michigan Process

30 Thank you Contact Me Michael I. Rich Associate, REDG Practice Group Weltman, Weinberg & Reis Co., LPA (248) Michigan Process