Is a Notice of Right to Cure Default Letter required before foreclosure?

Full question:

My Mortgage Company has been working on a Loan Modification on my mortgage for over 2 months. During those months, my mortgage has slipped into the 90 days past due category. While working on the Loan Modification, the Company informed me on multiple occasions (I called them approximately 3 times each month for the 2 months they were 'working' on the LM) that no monthly payment was required as the Loan Modification would bring the account current. The Loan Modification did not go through (I was not even aware that there was anything that had to go through). They called me and told me that they were going to GIVE me a Loan Modification. I had no idea that it was something that had to be applied for and approved) and the Mortgage Company, without any notice to me (I never received anything from them in the 2 month period, the only notice I received was a note posted to my front door from the Law Firm that is handling the foreclosure) has decided to proceed with foreclosure. The Company did not even send me any notice that they were unsuccessful with the Loan Modification. Does a Mortgage Company have an obligation to send a Lender a Notice of Right to Cure Default Letter if the mortgage gets to that point? Is it legal for a Mortgage Company to not send the letter, acknowledge that they did not and send it leaving the Lender with no idea that the Loan was in Default and still proceed with foreclosure?

• Category: Real Property
• Subcategory: Foreclosure
• Date: 04/07/2025
• State: Michigan

Answer:

The most common method of foreclosure in Michigan is non-judicial foreclosure, which does not require court action but mandates notice of foreclosure by advertisement. If the mortgage includes a power of sale clause, the specified procedures must be followed. Michigan law does not require a default notice, but the mortgage document may include specific notice provisions that must be adhered to.

In a non-judicial power of sale foreclosure, a notice of sale must be published weekly for four weeks in a local newspaper. Additionally, within fifteen days of the first publication, a notice must be posted at the property being foreclosed. This notice should include the names of the borrower and lender, a description of the property, and the terms of the sale, including the time, place, and date.

The sale occurs at a public auction to the highest bidder, conducted by the trustee or sheriff during specified hours. If the sale is postponed for over a week, a new notice must be published as the original notice was. In Michigan, the redemption period is typically six months, but this can vary under certain conditions, such as the number of units or the amount of debt owed.

To redeem the property, the borrower must pay off the mortgage, including all interest, late fees, court costs, attorney fees, and any other applicable fees. Redeeming the property through another mortgage can be challenging due to the negative credit impact from the foreclosure. Selling the property on the market is often a viable option. If the property is redeemed, all original ownership rights and obligations are restored.