January 2026

An informative e-newsletter for the Real Property Law Section of the State Bar of Michigan.

Protecting equity and rights: Predatory practices in pre- and post-foreclosure transactions

By Livia Khemmoro, Esq., Hirzel Law, PLC

Recent investigations across Michigan have exposed a coordinated pattern of predatory practices targeting homeowners in foreclosure. Unscrupulous third-party firms lure vulnerable homeowners with “rescue” deals or bargain sales, only to strip away equity and statutory rights. These schemes generally fall into three categories: (1) pre-sale equity‑stripping deeds, (2) post-sale surplus‑proceeds fraud, and (3) deceptive “ghost” probate filings. Each tactic exploits confusion and procedural gaps to deprive owners and heirs of significant value. This article summarizes documented tactics and provides practical guidance for real estate attorneys.

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Winter Conference 2026

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March 5-7, 2026
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Real Property Law Academy II
Michigan State University-MEC, Troy
April 29 & 30, 2026
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July 15-18, 2026

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Write an Article

Interested in writing an article for the e-Newsletter? Contact co-editors Samuel Kilberg at SKilberg@dykema.com or Glen Zatz at gzatz@bodmanlaw.com.

Can't remember where you saw that e-Newsletter article? Check the e-Newsletter article index.

We are also looking for suggested authors and topics for the Michigan Real Property Review. Please contact Chair-Elect, Leslee Lewis at llewis@dickinson-wright.com for suggested topics and ideas.

The views and opinions expressed in these articles are those of the authors, and they do not reflect in any way the positions of the State Bar of Michigan or the Real Property Law Section. These columns are meant for informational purposes only and should not be construed as legal advice. IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding tax-related penalties or (ii) promoting, marketing, or recommending to another person any transaction or matter addressed in this communication.