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Can Wells Fargo pursue my Michigan property after foreclosure in Las Vegas?

Can Wells Fargo pursue my Michigan property after foreclosure in Las Vegas?

Q: How long can you not pay your mortgage before foreclosure?

The timeframe before foreclosure can begin varies, but typically, lenders may start the process after three to six months of non-payment. During this time, you may receive notices and have opportunities to resolve your delinquency. Engaging with your lender early can help you find solutions to avoid foreclosure.

Full question:

I'm about to foreclose on my house here in Las Vegas. I have an 80/20 loan. Wells Fargo (20) told me they would be seeking a judgement against me. I am still in the house, and no trial dates have been set. I have property/pole barn in Michigan, with $30k equity in it. I owe WF $54,000. Will/can the bank come after me for that land in Michigan? Do I have to claim bankruptcy in order to consider it my 'homestead'? My number one priority is holding onto that land. Tell me what I need to do to make that happen please.

Category: Real Property
Subcategory: Homestead
Date: 04/07/2025
State: Nevada

Answer:

In Michigan, homestead exemption laws protect some property from creditors. Specifically, the exemption covers up to $3,500 in value for a homestead. However, this exemption does not apply to any mortgage on the homestead, except under specific conditions, such as if the mortgage is validly recorded and meets certain criteria.

If you and your spouse jointly own property, the homestead exemption may protect that property from creditors if only one spouse is facing a judgment. This means that if your Michigan property is held jointly, it could be exempt from execution under a judgment against only you.

Regarding bankruptcy, filing can help protect your assets from creditors. A Chapter 7 bankruptcy may allow you to keep certain exempt property while discharging most debts. However, it doesn't guarantee that you won't lose your property if creditors challenge the exemptions. The automatic stay from filing bankruptcy temporarily halts foreclosure actions, giving you time to address your financial situation.

For your specific situation, it’s advisable to consult with a bankruptcy attorney who can provide guidance based on your circumstances and help you navigate the laws to protect your Michigan property.

For more information on Michigan's homestead exemption, refer to the relevant statutes such as MCL 600.6023.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What is the 120 foreclosure rule?

The 120 foreclosure rule refers to a requirement in some states that lenders must wait at least 120 days after a borrower misses a mortgage payment before initiating foreclosure proceedings. This rule is designed to give homeowners time to catch up on payments or seek alternatives to foreclosure. However, specific rules can vary by state, so it's important to check local laws for details.

How long does it take to foreclose on a house in Nevada?

In Nevada, the foreclosure process typically takes about 3 to 6 months, depending on whether it is a judicial or non-judicial foreclosure. Non-judicial foreclosures, which are more common, can be quicker, while judicial foreclosures involve court proceedings and may take longer. Factors such as borrower response and court schedules can also affect the timeline.

Does Nevada have right of redemption for foreclosure?

Nevada does not generally provide a right of redemption after a non-judicial foreclosure. Once the property is sold at auction, the homeowner typically loses the right to reclaim it. However, in judicial foreclosures, there may be a limited right of redemption, allowing the borrower to reclaim the property within a specific timeframe after the sale. It's advisable to consult with a legal expert for specifics.

How many mortgage payments can you miss before foreclosure?

While there is no set number of missed payments that automatically leads to foreclosure, most lenders begin the foreclosure process after three to six months of missed payments. This timeline can vary based on the lender's policies and state laws. It's important to communicate with your lender if you're facing financial difficulties to explore options before reaching that point.

What happens if you are 3 months behind on your mortgage?

If you are three months behind on your mortgage, your lender may initiate the foreclosure process, depending on their policies and state laws. You may receive notices about missed payments and potential foreclosure. It's crucial to contact your lender to discuss your situation and explore options like loan modification or repayment plans to avoid foreclosure.

How long can you not pay your mortgage before foreclosure?

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