• In Michigan, late mortgage payments can lead to foreclosure.mortgage image by hans slegers from Fotolia.com
  
  As of June 2010, Michigan had a 13.2 percent unemployment rate (See Ref. 1). Many residents of Michigan have struggled to pay their mortgages after they have lost their jobs or encountered other financial difficulties. Michigan has several laws that govern late mortgage payments.
  
  

Delinquent Stage

• In Michigan, a home mortgage is considered "delinquent" on the day after the monthly mortgage payment is due (See Ref. 3). The lender will levy a late fee 16 to 30 days after the mortgage due date, according to the Michigan State Housing Development Authority (MSHDA) (See Ref. 2). Homeowners may start to get collection calls during the delinquent stage, according to MSHDA.
  
  

Default Stage

• In Michigan, a mortgage enters the "default" stage when it is 30 days past due (See Ref. 3). Lenders will send the first late notice to the homeowner at this time (See Ref. 2). According to MSHDA, the lender will send a "breach notice," stating the homeowner has violated the terms of the loan (See Ref 2).
  
  

Acceleration Stage

• According to the MSHDA, Michigan law states that the foreclosure process may begin at any time after the lender mails an "acceleration notice," which is a request for the homeowner to pay the entire past due and current mortgage amount. (See Ref. 2). This occurs typically 60 to 90 days after the mortgage payment due date (See Ref. 3). If the homeowner does not send payment within 90 days of the original due date, the foreclosure process will begin (See Ref. 2). The lender will also hire an attorney at this time and charge the homeowner attorney's fees, typically amounting to around $2,000 (See Ref. 3).