Michigan Foreclosure Law: How the Foreclosure Process Affects You
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This section will review foreclosure laws in Michigan. Because foreclosure laws vary from state to state, it is important to understand how the Michigan foreclosure process works. Remember, when you consider buying a foreclosure, the state in which the property is located determines the laws regarding the property, not the state where the buyer may reside. In many cases buyers of foreclosed homes located in Michigan also live in Michigan. Be aware of how state foreclosure laws may impact your personal situation. You can learn a [no-glossary]lot[/no-glossary] about the system for foreclosure in Michigan in this section, but our information is not a substitute for professional legal advice. And because every state’s laws are subject to change without notice, we recommend you consult a real estate lawyer to gain a professional opinion of our information, and your interpretation of the information, as it applies to your specific real estate investment or home purchase situation.
Visit the Michigan law details below to learn about how Michigan foreclosure handles aspects of judicial or non-judicial availability, primary security instruments, foreclosure timelines and foreclosure filing milestones, guidelines for Power of Sale in Michigan, and application of deficiency judgments. We’ll help you understand these foreclosure law [no-glossary]terms[/no-glossary] and how Michigan applies them to the process. You may or may not need to navigate through Michigan’s laws in great detail during your purchase process, but smart foreclosure buyers find that learning a lot might help save a lot on a discount home purchase.
Judicial Foreclosure Available:
Yes
Non-Judicial Foreclosure Available:
Yes
Primary Security Instruments:
Deed of Trust, Mortgage
Timeline:
Typically 60 days
Right of Redemption:
Yes
Deficiency Judgments Allowed:
Varies
The Foreclosure Process in Michigan
Lenders in Michigan may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.
Judicial Foreclosure
In judicial foreclosure, a court decrees the amount of the borrowers debt and gives him or her a short time to pay. If the borrower fails to pay within that time, then the court will issue a notice of sale.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below.
Regulations for Michigan Foreclosures
Power of Sale Guidelines
If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:
- A notice of sale must be published once a week for 4 in a newspaper of general circulation in the county where the property is located. The notice must also be posted on the property at least 15 days after the first notice of sale is published.
- The notice must contain the borrower and lenders name, a description of the property, the terms of the sale and the time, place and date of the sale.
- The sale must be made at public auction to the highest bidder. The trustee or the sheriff of the county, if different, may conduct the sale between the hours of 9:00 am and 4:00 pm on the date specified in the notice of sale.
- The sale may be postponed by posting a notice at the time and place where the sale was to originally be held. If the postponement is for more than one week, it must also be published in the manner as the original notice of sale was given.
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