Foreclosure University Forum

Michigan Mortgage Foreclosure and Insurance

by jmich18 @, Long Island, NY, Monday, June 14, 2010, 09:40 (3577 days ago) @ skittles

� We are the mortgagee of a property in Michigan though we live in another
� state. The mortgagor who in turn is renting the house to somebody has
� stop paying us. We are in the process of foreclosing the house. My
� questions are:
� 1) In the Mortgage contract, it states that "we, the mortgagee have the
� right to foreclose the property just by posting an advertisement on the
� newspaper". I do see in your Michigan Foreclosure Law that, we need to
� include a Power of Sale which permits the property to be sold by public
� auction. Do we have a right to just foreclose the property but NOT sell
� it to the public via auction since it will be sold for so much less> We
� are planning to sell the property thru a real estate broker after the
� foreclosure. Or is the Public Auction Sale Mandatory if the foreclosure
� is only thru advertisement>
� 2) Can we as the mortgagee purchase insurance for this property> We're
� worried what if something happens to the house then we'd totally be zeroed
� out. I've ask State Farm and was informed that since we do not live in
� Michigan, we cannot purchase insurance. Can you please suggest where we
� can purchase Mortgagee insurance. I know banks are able to do this but
� for us individual investors, what are our recourse> Can you name some
� company around Michigan state>
� 3) What happens if the mortgagor files for bankruptcy, can we still get
� our property back since we are the only mortgagor and since he is not
� using this property as his primary residence but is renting it out>

In regard to item 2 - I'm a State Farm customer for many years and they insure my properties out of state in PA and AL (I live in NY.)
Maybe there is a restriction in MI State regulations but I'd call another State Farm Broker.
I also have Farmers insurance on one of my properties.

John from Long Island

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