Mortgage payments are considered "delinquent" the day after the due date.

After the 15th day of delinquency a late fee may be assessed to the mortgage account and the first late notice is mailed. Loan services may begin to call the borrower to find out the reason the payment is late.

When the mortgage payment is 30 days past due the lender will begin a procedure known as "acceleration". This begins with the lender sending a letter indicating that foreclosure will soon begin. During the acceleration process the lender may demand the total amount due, including current payments, all past due amounts, late fees and interest. The lender may refuse to accept any partial payments, cancel payment arrangements that previously had been set, and state that the loan is due in full. If the property is abandoned during this period the home can be repossessed, locked and the utilites will be disconnected.

 In Michigan, foreclosure proceedings may occur any time after the lender sends out the acceleration notice. However, this usually does not happen until the loan is at least 90 days late. Once these proceedings begin, attorney fees will be added to the amount that is owed on the loan, which is typically $2,000.

Most commonly in Michigan, foreclosures take place via Sheriff's Sale where the property is listed for sale in a newspaper for four consecutive weeks, after which the county sheriff sells the property to the winning bidder. After a Sheriff's Sale takes place the mortgager generally has a six-month "redemption period" where the property can be bought back provided that the total mortgage, fees, and court costs are paid in full.

Source: Michigan State Housing Development Authority, Stages of foreclosure, http://www.michigan.gov/mshda/0,1607,7-141-45866_47905-177816--,00.html