Michigan Foreclosure Law

Timeline: 60 days

Redemption: thirty (30) days to twelve (12) months

Deficiency Judgments: Yes

Judicial Foreclosure: Yes

Non-Judicial Foreclosure: Yes

Security Instruments: Deed of Trust, Mortgage

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Both the Non-Judicial and Judicial Foreclosure processes may be used in Michigan when the borrower defaults on the loan. When the Judicial Foreclosure process is used, the lender must sue the borrower in court to obtain a decree of the amount in default. The court gives the borrower a set amount of time to cure the default, and if the borrower fails to do so, the court issues a notice of sale. If the Non-Judicial Foreclosure process is used, the original loan documents must contain a “power of sale” clause, authorizing the lender to sell the property in the event the borrower defaults. If the clause specifies the time, place, and terms of the sale, then those processes must be followed.

The sale process in Michigan requires the notice of sale to be published for four (4) consecutive weeks in a newspaper that is generally circulated in the county in which the property is located. Also, the notice must be posted on the property within fifteen (15) days of the first newspaper publication.

The sheriff of the county or the lender's trustee conducts the auction on the date specified in the notice between the hours of 9:00 AM and 4:00 PM . The deed the high bidder receives at the auction becomes operative once the applicable redemption period has expired.

Michigan allows the sale to be postponed be posting a notice of the postponement at the time and place of the original sale date. If the postponement is for longer than one week, the notice of sale must again be published for four (4) consecutive weeks.

The borrower has the right to redeem the property. The length of the redemption period depends on the circumstances of the sale. If the property has been abandoned, the redemption period is thirty (30) days. If the remaining balance of the loan is more than two-thirds of the original amount of the loan, there is a six (6) month redemption period. In all other cases, the redemption period is twelve (12) months.