Michigan Foreclosure Laws
Attorney General's Office
Law Building
P.O. Box 30212
Lansing, MI 48909
Ph: (517) 373-1110
Fax: (517) 373-4916
Foreclosure Laws in Michigan
Judicial Foreclosure: Yes
Non-Judicial Foreclosure: Yes
Security Instruments: Mortgage / Trust Deed
Right of Redemption: Yes. 12 Months (30 Days if abandoned)
Deficiency Judgments: Varies. Case by Case
Time Frame: 60 Days
Public Notice: Publication
Judicial foreclosure: The lender must sue the borrower and obtain
a decree of the amount in default. The court then gives the borrower a brief time
to cure the default. If the borrower fails to do so, the court issues a notice of
sale.
Non-judicial foreclosure: Used when the loan document contains
a power of sale clause authorizing the lender to sell the property to pay off the
loan in the event of default. If the clause specifies the time, place, and terms
of sale, that procedure must be followed. Otherwise, the process is as follows:
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The notice of sale must be published weekly for four consecutive weeks in a newspaper
of general circulation in the county in which the property is located. The notice
must also be posted on the property within fifteen days after the first publication
date.
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The sale is held as a public auction by the lender’s trustee or the sheriff of the
county between 9:00 AM and 4:00 PM on the date specified. The successful bidder
receives a deed to the property that becomes operative at the expiration of the
applicable redemption period.
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The sale may be postponed by posting a notice of postponement at the time and place
of the original sale date. If the postponement is for more than one week, the notice
of sale must be re-published for four more consecutive weeks.
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Right of redemption: If the remaining balance of the loan is more than two-thirds
of the original amount-6 months; if abandoned-30 days. In all other cases, one year.
Laws:
