Michigan second lender foreclosing, but not first lender.

[divona2000]

What is the name of your state? MI

Background info:
In 2000 my husband and I took out a $75,000 first mortgage, with PMI, to buy our doublewide (on a foundation) and 8 acres (7 lots) with Northwestern. That payoff is now $70,000. In 2002 we took out a $15,000 equity loan with Centex. That payoff is now $18,000. In 2003 we divorced, ex refused to pay on loans. I live in the home, was able to keep the first mortgage paid, but not the second. Ex has now agreed to pay Centex $1000 a month to catch up arrears. Centex's atty. verbally agreed to accept $2,500 by June 22, 2006 to stop the foreclosure, but Centex's Collections Dept. refuses to accept ANY payments, even for full arrears, and claims their atty. had no right to give us "numbers". Centex's Loss Mitigation Dept. just turns us back to Collections. Centex claims the arrears is $3,600 and the total due is now $6,000, (due to interest and fees). The home is being sold at a Sheriff's auction on June 22, 2006. Centex claims they sent me a letter in Feb. 2006 (I didn't get it) and they have no record of a letter in May, but I received a letter dated May 17, 2006 from Centex's atty. threatening foreclosure, and giving me 30 days to respond. A week later the atty. sent me a small, cut out photocopy of sheriff's sale in my local newspaper, dated May 24, 2006, already listing the sale. This is ALL I have received concerning the foreclosure.
We have NOT been served with a Foreclosure Complaint. Notice was posted on the home 6-5-06. We have not been given time to resolve this issue or redeem before sale. The newspaper listing says I have 6 months to redeem the property-BUT we mortgaged 8 acres (7 lots) with Centex, and Centex has all 8 acres, individually listed by lot number, in the sale-so we should have 12 months for redemption. The first mortgage is not mentioned in the notice-Northwestern says Centex may buy them out, and I will have to redeem the home from Centex for the entire amount due (probably at Centex's higher interest rate-14.4%) if it sells at the Sheriff's auction. The home has been listed with a broker since March 2005. I have now dropped the price $20,000 under the $127,000 app., trying for a very fast sale, just enough to pay the mortgages and broker, etc. Broker says he can still legally sell it during the redemption period after a foreclosure sale.
Questions are:
1. If is does sell at the auction, can I stay in the home during the redemption period?
2. If it doesn't sell at auction, then what?
3. What will happen to the first mortgages holder (Northwestern)'s lien?
4. Should I continue to pay the first mortgage holder before the auction?
5. Should I continue to pay the first mortgage holder after the auction if it doesn't sell?

Northwestern insists that the law says I can stay in home for12 months after the sheriff's sale, and sell the home through the broker, but I have read many posts about "writ of possession" and "10 days eviction". I am 45 yrs old, this is my homestead, and scared to death that in 2 weeks I will be evicted by the police and end up in the street.

[divona2000]

I guess my questions are too complex, as I received no answers, but thank you for reading my post. I am just going to let the second mortgage holder foreclose also, as I see no other choice.