In these days, debt problems have become a part and parcel of our daily life. In Michigan, the condition is worse as the economy has been off for more than a few years. There are times when you have to choose between your food and your monthly mortgage payment. If you cannot overcome such a situation and fall behind on your mortgage payments, it is most likely that the lender would foreclose your home. What you could do is to move out or find a way to stop the foreclosure.


1. Opt out a mortgage refinance or home equity loan. If the mortgage is 5 or 10 years old, you might have almost paid down the debt. Further, if the property has risen in value over time, you can make use of the accumulated equity. And if you refinance at a lower interest rate, the lower monthly payments would provide you with some ease.

2. Ask your lender whether he wishes to change your current mortgage, especially if the value of your property has decayed. However, if you are badly behind your payments, it is obvious that a foreclosure is bound to take place and your lender will perhaps receive just a portion of the amount. But if he reduces the loan, he will not have to take the house to auction and you will owe less money. A lender can otherwise extend the loan period, which will reduce your monthly payments.

3. Selling your house might be the last option. Though many people in Michigan are selling their homes in less than their market value, you may sell your home for at least what you owe. However, by selling your house, you will be able to reduce the mental pressure associated with a foreclosure. If you sell your house, you will further be able to repair your finances and you credit report will encounter no gust.

4. If everything fails, file Chapter 7 bankruptcy, which will certainly stop the foreclosure. Further, in Michigan, the first $34,450 of your primary dwelling is exempt or $51,650 if you are aged or disabled. However, before filing a Chapter 7, think twice as this will completely ruin your credit report and will stay there for 10 years. Filing a Chapter 7 will further make it difficult for you to borrow money in future.