Foreclosures in Michigan don’t take very long and the homeowner gets little notice about the proceedings. If you are facing a foreclosure in Michigan, it’s important to understand some of the basics, including the most common type of foreclosure procedure used in Michigan, how much notice you’ll get, your rights and protections in the process, and whether you’ll be liable for a deficiency judgment afterwards.
This article contains a summary of some of the key features of Michigan foreclosure law along with citations to the statutes so you can read the law yourself.
The citations to Michigan’s foreclosure statutes are:
We’ve summarized important parts of Michigan’s foreclosure laws below. You can find more detailed articles on various aspects of Michigan foreclosure law in Nolo’s Michigan Foreclosure Law Center.
Michigan foreclosures are typically nonjudicial (which take place out of court), though they can be judicial (which means the lender files a lawsuit to foreclose) as well. Since most foreclosures in Michigan are nonjudicial, this article focuses on that process.
To officially begin the foreclosure, the foreclosing party publishes a notice of sale in a newspaper for four successive weeks at least once per week. Within 15 days after the first publication, a copy of the notice must be posted in a conspicuous place on the property. Mich. Comp. Laws § 600.3208.
Michigan law does not require the foreclosing party to mail notice of the foreclosure to the borrower. However, most mortgages in Michigan require the foreclosing party to mail a 30-day notice of default to the borrower prior to starting foreclosure proceedings.
Michigan law provides special protections against foreclosure to certain military service members, including members of the Michigan national guard. For example, the lender generally cannot foreclose nonjudicially if the borrower is a service member and:
Any nonjudicial foreclosure during the service member's period of military service (or within six months after the end of the service member's period of military service) is invalid unless a court orders the foreclosure or sale. Mich. Comp. Laws § 600.3285. (Keep in mind there is also a federal law, the Servicemembers Civil Relief Act, which provides protections to military service members who are facing foreclosure.)
“Reinstating” is when you catch up on the missed payments (plus fees and costs) in order to stop a foreclosure. (Learn more about reinstatement to avoid foreclosure.)
While there is no statutory right to reinstate before the sale in Michigan, most mortgages give the borrower the right to reinstate the loan or the foreclosing party may allow reinstatement.
Some states allow the borrower to redeem (repurchase) the home within a certain period of time after the foreclosure. In Michigan, the redemption period is:
When the total mortgage debt exceeds the foreclosure sale price, the difference is called a “deficiency.” Some states allow the lender to seek a personal judgment (called a “deficiency judgment”) against the borrower for this amount, while other states prohibit deficiency judgments with what are called anti-deficiency laws.
There is no anti-deficiency law in Michigan. The foreclosing party may obtain a deficiency judgment following a nonjudicial foreclosure. The borrower can contest the amount of the deficiency if:
Under Michigan law, the foreclosed homeowners get the right to live in the property during the redemption period.
Generally, the new owner must wait until the redemption period expires to begin eviction proceedings. However, the former owners must allow the new owner to inspect both the interior and exterior of the home during the redemption period. The new owner of the home may begin eviction proceedings before the redemption period expires if: