Michigan Foreclosure Timeline and Laws

Michigan Foreclosure Process and Procedure

If you default on your mortgage, your lender can institute foreclosure proceedings against you and auction your property at a foreclosure sale.

Michigan foreclosures are conducted by non-judicial foreclosure proceeding.  Judicial foreclosures are conducted if there is no power of sale clause in the deed of trust.

Notice Requirements for Foreclosure in Michigan

Prior to commencing foreclosure, the lender must publish a notice of sale for four consecutive weeks in a newspaper of general circulation in the county where the property is located. Within 15 days of the first publication, a further notice must be posted at the property.

Michigan Deficiency and Anti-Deficiency Laws

The lender may obtain a deficiency judgment if the property is sold for less than the loan amount.

Michigan Redemption Rights

Michigan has a post-sale statutory right of redemption. The redemption period varies as follows:

1. If the property is residential, does not exceed four units and is not more than 3 acres, if the defaulted amount at the date of the notice of foreclosure is more than 2/3 of the original face amount of the debt secured by the mortgage, the redemption period is six months.
2. If the property is abandoned, the redemption period is 30 days.
3. In all other cases the redemption period is one year.

Michigan Assistance, Special Programs, Government Help, and Law Updates

Foreclosure Programs:

• Michigan Foreclosure Avoidance Counseling -HUD
• The Home Affordable Mortgage Modification Program
• The Home Affordable Refinance Program
• The Home Affordable Foreclosure Alternatives Program
• FHA Secure
• Hope for Homeowners

Foreclosure Lawyer

Michigan foreclosure laws are complex. It is recommended that you consult with a foreclosure lawyer who can advise you about options to avoid foreclosure including refinancing, reinstatement, deed in lieu, mortgage modification, short sale or bankruptcy.