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I went through a Michigan foreclosure which was completed 4 1/2 years ago through a sheriff's sale. Without my knowledge, my mortgage company is now reporting that I owe them $30,000 because the sale did not cover the mortgage amount. While I understand that there are deficiency judgements, I never received any kind of notice of legal proceedings. In addition, and this is the biggest issue, I paid mortgage insurance (PMI) for the life of the mortgage. Everything I've read about foreclosure law states that a deficiency judgment cannot be pursued of the borrower paid PMI. Does anyone know what the steps are for me to have this rectified? I will truly appreciate any information on this subject.

thanks!

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According to my consumer law guide, Michigan allows for deficiency judgments under certain circumstances.   Unfortunately, it does not list every single circumstance.   You will probably need to talk to a Michigan foreclosure attorney about this one.   I do not see anything about PMI insurance purchases prohibiting a deficiency judgment but it is possible.   

They may not have an actual judgment against you yet but I would expect a lawsuit to be forthcoming if they are allowed to legally collect that amount.

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