MSUFCU Routing Number: 272479663
MSUFCU SWIFT Code: MSUCUS44

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MSU Federal Credit Union | Financial Library | Foreclosure Survival Guide

Foreclosure Survival Guide


 

Having Trouble Making Your Mortgage Payment? 

No matter the reason you've fallen behind on your mortgage payment, MSUFCU wants to help keep you and your family in your home.


Your financial setback may be short-term in nature and temporary, or it may be long-term and your payment is just too much for your income and budget. Don't wait! If you are having trouble making your monthly payment, act now. Communication with MSUFCU is very important for us to help you maintain your home. Not making your loan payments and not communicating with your lender about your situation can have serious consequences.

Foreclosure in Michigan can happen either by judicial action or by public advertisement. Mortgage payments are usually due on the first of each month. If the payment is not made by the due date it is considered "delinquent." After day 15, a late fee is assessed and the first notice is mailed. A loan is in default after it is 30 days late, and a second notice is sent. Your mortgage being in default will negatively impact your credit score.


Foreclosure should be avoided at all costs. Not only will your credit score decrease significantly, by 100 points or more, but a foreclosure can remain on your credit report for seven to ten years. Your credit score is used by many different companies to determine what rate you will pay, including insurance companies, financial institutions, and other lenders. Also, most lenders will require that at least 2-4 years have passed before they will consider a new mortgage loan.


Most lenders, including MSUFCU, would rather help you keep your home than take it away from you. Foreclosure is an expensive process for all lenders, and the funds from the sale of the foreclosed home are rarely enough to cover the remaining loan balance and all of the foreclosure costs. When homeowners experience financial difficulties, lenders prefer to help borrowers get back on their feet and maintain good relationships with them.