Question 1

Is Michigan a judicial or non-judicial foreclosure state?

Accepted Answer

Both. A mortgage that contains a power of sale may be foreclosed "by advertisement" (without a court case) after a default, as long as no lawsuit to collect the debt is pending, the mortgage is recorded, and the foreclosing party owns the debt (or an interest in it) or is the servicer. The circuit court also has jurisdiction to foreclose mortgages and land contracts through a court case. These procedures do not apply to mortgages held by the Michigan State Housing Development Authority.

Question 2

What notice is required before a foreclosure sale in Michigan?

Accepted Answer

For a foreclosure by advertisement, notice of the sale must be published at least once a week for 4 successive weeks in a newspaper in the county where the property is, and a copy must be posted in a conspicuous place on the property within 15 days after the first publication. The notice must list the borrower and lender, the amount claimed due, a description and street address of the property, the length of the redemption period, a warning that the borrower will be responsible for damaging the property during the redemption period, the foreclosing attorney's contact information, and, for residential mortgages, a notice to active-duty military service members. If the foreclosing party is not the original lender, a recorded chain of title showing the assignment must exist before the sale date.

Question 3

How long does foreclosure take in Michigan?

Accepted Answer

In a foreclosure by advertisement, the sale notice must be published for 4 successive weeks (at least once each week) before the sale, and posted on the property within 15 days after the first publication. After the sale, the homeowner has a redemption period (generally 6 months or 1 year for homes of 1 to 4 units, shorter if the property is abandoned) before the buyer's deed becomes final.

Question 4

Is there a right of redemption after foreclosure in Michigan?

Accepted Answer

Yes. After a foreclosure sale by advertisement, the borrower (or heirs, or anyone with a recorded interest claiming under the borrower) can void the buyer's deed by paying the sale bid plus interest at the mortgage rate, the sheriff's fee, and certain taxes, insurance and association dues the buyer paid. For a mortgage signed on or after January 1, 1965, on a home of 1 to 4 units, the redemption period is 6 months if the amount claimed due when the foreclosure notice was given was more than 66-2/3% of the original loan; otherwise it is generally 1 year from the sale. It is 1 month for an abandoned 1-to-4-unit home (abandonment is presumed only after required notices and an affidavit), 6 months for commercial property or residential property over 4 units, and 1 year for agricultural property. The buyer must record an affidavit stating the exact amount needed to redeem and the redemption deadline. The redemption right can be cut off early if the buyer wins a court case for possession because the property is being damaged.

Question 5

Can the lender come after you for the rest of the loan after foreclosure in Michigan?

Accepted Answer

A lender may sue for a deficiency after a foreclosure sale. When the lender (or holder of the debt) bought the property at a foreclosure-by-advertisement sale, the borrower may defend by showing that the property was fairly worth the amount of the debt at the time of sale, or that the bid was substantially less than the property's true value; this defense can reduce or defeat the deficiency. This defense does not apply to court-ordered (judicial) foreclosure sales.

Question 6

Can an HOA foreclose on your home in Michigan?

Accepted Answer

Yes, for condominiums. Unpaid condominium assessments, with interest, late and collection charges, attorney fees and fines allowed by the condominium documents, are a lien on the unit, ranking ahead of other liens except tax liens and a first mortgage of record (though past-due assessments covered by a recorded notice of lien have priority over a first mortgage recorded after that notice). The association may foreclose the lien by court action or by advertisement, in the same manner as a mortgage. Before starting foreclosure, it must record a notice of lien and mail it to the owner at least 10 days in advance. The redemption period after the sale is 6 months, or 1 month if the property is abandoned.

Question 7

What must a home seller disclose in Michigan?

Accepted Answer

Yes. Under the Seller Disclosure Act, sellers of property with 1 to 4 residential units (including by land contract, lease with option to buy, or transfer of a cooperative interest) must give the buyer a written "Seller's Disclosure Statement" on the statutory form before signing a binding purchase agreement. If the statement is delivered after the purchase agreement is signed, the buyer may terminate by written notice within 72 hours after in-person delivery or 120 hours after delivery by registered mail, until the deed or land contract transfer.

Question 8

How do you get your home back after a tax sale in Michigan?

Accepted Answer

On March 1 of each tax year, property with taxes, interest, penalties and fees delinquent for the preceding 12 months or more is forfeited to the county treasurer (and a $175 fee is added). Forfeited property may still be redeemed at any time on or before the March 31 after the court enters a judgment foreclosing the property (or within 21 days after the judgment in a contested case) by paying the county treasurer the delinquent taxes, interest, penalties and fees, additional interest of 1/2% per month, and recording and notice fees. Absolute title then vests in the foreclosing governmental unit if not redeemed. A former owner may claim an interest in any remaining sale proceeds under the statute's procedures. Principal residences under a tax foreclosure avoidance agreement are withheld from foreclosure while the agreement is in effect.

Question 9

Where can homeowners get free foreclosure help in Michigan?

Accepted Answer

The Michigan State Housing Development Authority (MSHDA) says homeowners falling behind on mortgage payments or facing mortgage or tax foreclosure should first contact a HUD-certified housing counselor through MSHDA's Housing Education Program, which can help communicate with the lender and request more time. MSHDA's site provides a counselor locator and mortgage and property-tax foreclosure timelines.

Judicial or non-judicial	Both. A mortgage that contains a power of sale may be foreclosed "by advertisement" (without a court case) after a default, as long as no lawsuit to collect the debt is pending, the mortgage is recorded, and the foreclosing party owns the debt (or an interest in it) or is the servicer. The circuit court also has jurisdiction to foreclose mortgages and land contracts through a court case. These procedures do not apply to mortgages held by the Michigan State Housing Development Authority. The statutes read do not say which method is most common. Source: MCL 600.3101, 600.3201, 600.3204
Required notices	For a foreclosure by advertisement, notice of the sale must be published at least once a week for 4 successive weeks in a newspaper in the county where the property is, and a copy must be posted in a conspicuous place on the property within 15 days after the first publication. The notice must list the borrower and lender, the amount claimed due, a description and street address of the property, the length of the redemption period, a warning that the borrower will be responsible for damaging the property during the redemption period, the foreclosing attorney's contact information, and, for residential mortgages, a notice to active-duty military service members. If the foreclosing party is not the original lender, a recorded chain of title showing the assignment must exist before the sale date. Source: MCL 600.3204(3), 600.3208, 600.3212
Time frames set by law	In a foreclosure by advertisement, the sale notice must be published for 4 successive weeks (at least once each week) before the sale, and posted on the property within 15 days after the first publication. After the sale, the homeowner has a redemption period (generally 6 months or 1 year for homes of 1 to 4 units, shorter if the property is abandoned) before the buyer's deed becomes final. Source: MCL 600.3208, 600.3240

HOA liens and foreclosure	Yes, for condominiums. Unpaid condominium assessments, with interest, late and collection charges, attorney fees and fines allowed by the condominium documents, are a lien on the unit, ranking ahead of other liens except tax liens and a first mortgage of record (though past-due assessments covered by a recorded notice of lien have priority over a first mortgage recorded after that notice). The association may foreclose the lien by court action or by advertisement, in the same manner as a mortgage. Before starting foreclosure, it must record a notice of lien and mail it to the owner at least 10 days in advance. The redemption period after the sale is 6 months, or 1 month if the property is abandoned. Source: MCL 559.208 (Condominium Act § 108)
Property tax sales	On March 1 of each tax year, property with taxes, interest, penalties and fees delinquent for the preceding 12 months or more is forfeited to the county treasurer (and a $175 fee is added). Forfeited property may still be redeemed at any time on or before the March 31 after the court enters a judgment foreclosing the property (or within 21 days after the judgment in a contested case) by paying the county treasurer the delinquent taxes, interest, penalties and fees, additional interest of 1/2% per month, and recording and notice fees. Absolute title then vests in the foreclosing governmental unit if not redeemed. A former owner may claim an interest in any remaining sale proceeds under the statute's procedures. Principal residences under a tax foreclosure avoidance agreement are withheld from foreclosure while the agreement is in effect. Source: MCL 211.78g
Seller disclosure	Yes. Under the Seller Disclosure Act, sellers of property with 1 to 4 residential units (including by land contract, lease with option to buy, or transfer of a cooperative interest) must give the buyer a written "Seller's Disclosure Statement" on the statutory form before signing a binding purchase agreement. If the statement is delivered after the purchase agreement is signed, the buyer may terminate by written notice within 72 hours after in-person delivery or 120 hours after delivery by registered mail, until the deed or land contract transfer. Source: MCL 565.952, 565.954, 565.957

Michigan Foreclosure Laws: Process, Timeline and Your Rights

Quick answers for Michigan

How foreclosure works

After the sale

HOAs, taxes and selling

Getting help

Foreclosure & Homeowner Law FAQ

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