How Foreclosure Works in Michigan

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.

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.

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.