Foreclosures Rising in 2025 Compared to 2024 – Is Bankruptcy Next?

Did you know that foreclosures are up in 2025 as compared to 2024? There was a 12% increase in completed foreclosures for the first half of 2025 compared to the same period in 2024.

September 2025 saw a 20% year-over-year jump in completed foreclosures, while October 2025 saw a 32% jump. There is distress in the housing market.

And if you’re facing foreclosure, you’re certainly feeling that distress. The good news is, you can use bankruptcy to prevent foreclosure. The process all starts with a call to an experienced bankruptcy attorney.

Reasons Leading to Foreclosure

There are so many reasons someone may be facing foreclosure on their home. And based on the figures above, it’s clearly not an isolated incident. Just know that you’re not alone.

Perhaps you’ve experienced a hardship such as job loss, reduced income, or unexpected expenses. You may have credit card bills, student loans, car loans, or other debts that have accumulated and make it difficult to pay your mortgage. If you’re in the process of a divorce or a separation, you may be feeling financial strain. It could be that you’re struggling with an illness or a disability.

If you have an adjustable-rate mortgage (ARM), the payments may have gotten too high based on the current state of the housing market. Or your outstanding loan balance now exceeds the market value of your home and you have an underwater mortgage.

Unfortunately, it’s all too easy to face foreclosure. And nobody wants to be subjected to the brutality of the foreclosure timeline.

Michigan’s Foreclosure Timeline

The process of foreclosure begins when a homeowner is more than 120 days delinquent on a mortgage payment. At this point, the homeowner can explore loss mitigation options with their lender. Then the lender records the beginning of the process with the county register of deeds.

A Sheriff’s Sale date is scheduled by the lender and advertised it in a local newspaper for four consecutive weeks. The Sheriff’s Sale is a public auction of your property, usually held at the county courthouse. 

The highest bidder buys the property. If there are no bidders, the lender becomes the owner. Whatever the case, they receive a Sheriff’s Deed. On this deed is there is a written date. The date marks the end of the redemption period.

It’s during the redemption period that the former homeowner can reclaim the property. This period is typically six months, but could be as long as 12 months if the outstanding mortgage was less than two-thirds of the original loan amount at the time of foreclosure or if it’s an agricultural property. During this time, the homeowner is permitted to remain in the property if they maintain it and pay utilities and insurance.

After that amount of time, the original homeowner must pay the full amount owed, plus any additional costs, if they wish to redeem the property. If they do not, ownership permanently transfers to the buyer from the Sheriff’s Sale. The new owner has the right to evict the former homeowner at this point.

Using Bankruptcy to Prevent Foreclosure

It’s not common knowledge for many facing a foreclosure that their home could be saved through the bankruptcy process. Filing a bankruptcy under any chapter of the Bankruptcy Code will activate an ‘automatic stay.’ This is the halting of all collection actions, including garnishment, repossessions, and foreclosures, thereby giving the homeowner a chance to get back on their feet before losing their home. And it goes into effect immediately, regardless of notice to the creditor.

It should be noted that it’s generally too late to file for bankruptcy to save your home after the Sheriff’s Sale is complete and the property is sold to a new party. But right up until the auctioneer’s gavel falls on the date of the sale, you can still use a bankruptcy petition to stop the foreclosure process. But you don’t want to make the mistake of doing this on your own. Recruiting the services of a skilled bankruptcy attorney who has experience in helping those facing foreclosure is crucial. 

Could Filing for Bankruptcy Save Your Home?

There was once a stigma around filing for bankruptcy. But that’s no longer the case.

Times are tough right now and there’s no shame in using a bankruptcy to prevent foreclosure. It could provide you with a fresh start by discharging debt while allowing you to keep your home.

So if you’re facing foreclosure, contact us today. The attorneys at Gold, Lange, Majoros, and Smalarz are particularly adept at filing for bankruptcy to stop the foreclosure process and keep you in your home.