Skip to main content
How to avoidForeclosure
Get help

Michigan · Weigh your options

Can the lender come after you for the rest? Deficiency judgments in Michigan

Yes, in Michigan a lender can sue you for the shortfall after a foreclosure by advertisement sheriff's sale. If the lender bought the home itself, you can defend by showing the home was worth the debt or that the bid was substantially less than its true value, which can cancel the deficiency in whole or in part. In a court foreclosure, the deficiency comes from the foreclosure judgment itself.

Ask for help in Michigan Free HUD counselor: (800) 569-4287

Reviewed against Michigan law and official sources on October 12, 2026. General information, not legal advice.

Deficiency rules in Michigan, point by point

  • After a sheriff's sale by advertisement

    After the sheriff's sale

    The sale price is credited to what you owe. If there is a balance, the lender has to file a lawsuit against you to get a deficiency judgment.

    MCL 600.3280

  • The fair value defense when the lender buys

    When you answer the lawsuit

    If the lender or note holder bought the home at the sale, directly or indirectly, you can show that the home was fairly worth the debt or that the bid was substantially less than its true value. That defense can defeat the deficiency in whole or in part, but it does not undo the buyer's title.

    MCL 600.3280

  • Court foreclosures work differently

    After the court confirms the sale

    In a judicial foreclosure, the judgment says who is personally liable. After the court confirms the sale, the clerk can issue an execution for the deficiency at the lender's request, without new notice to you. The court can also set a minimum sale price.

    MCL 600.3150, 600.3155

  • Deadline to sue

    6 to 10 years, depending on the claim

    A suit on a note must generally be filed within 6 years after the due date or the date the loan was accelerated. Michigan also has a 10-year period for an action on a covenant in a mortgage. Which one applies depends on how the lender frames its claim.

    MCL 440.3118; MCL 600.5807(5), (9)

  • Short sale or deed in lieu

    Before you sign

    We did not find a Michigan statute that decides whether you owe a balance after a short sale or deed in lieu. The written agreement controls, so ask for a written release of any remaining debt before you sign.

  • How long a judgment lasts and garnishment

    10 years, and it can be renewed

    A lender has 10 years from a judgment to sue on it for a new judgment. A wage garnishment stays in effect until the judgment is paid, and the lender must send you a balance statement at least every 6 months and a release within 21 days after it is paid in full.

    MCL 600.5809(3), 600.4012

  • If you are sued for a deficiency

    By the deadline on the summons

    File an answer on time and raise any defense, such as the fair value defense or a late filing. Michigan Legal Help has forms and can connect you with legal aid.

    MCL 600.3280

The short answer in Michigan

Can the lender come after me for the rest?

Deficiency judgments allowed

If the sale price is less than what you owe, the lender can sue you for the difference. If the lender itself bought the home at the sale, you can defend by showing the home was fairly worth the debt, or that the bid was well below its true value. That defense can cancel the deficiency in whole or in part.

MCL 600.3280

Common questions in Michigan

Does the Michigan fair value defense work if someone else bought my home at the sheriff's sale?

No. The defense applies only when the lender or other holder of the debt became the buyer at the sale, directly or indirectly. If an outside bidder bought the home, the sale price is what is credited to your debt.

Can a Michigan lender collect a deficiency without a new lawsuit after a court foreclosure?

Yes. In a judicial foreclosure, the judgment decides who is personally liable, and after the court confirms the sale the clerk can issue an execution for the deficiency without notice to you. The fair value defense in MCL 600.3280 does not apply to court-ordered sales.

If my Michigan wages are garnished, how do I know how much is left?

While a garnishment of your wages is in effect, the lender must send you and your employer a statement of the remaining balance, including interest and costs, at least once every 6 months. Within 21 days after the judgment is paid in full, it must send a release of the garnishment.

Step by step

More on foreclosure in Michigan

Understand the process

What is happening and how much time there is.

Weigh your options

What can stop it, and what happens if it goes ahead.

Get help now

Who to call, and what to do when a sale is scheduled.

Also in Michigan

Property tax foreclosure Claim surplus funds Deficiency judgments (this page)Letters you may get

Back to the Michigan overview

Free, official, nationwide

Free help anywhere in the country

Ask a question

Need help avoiding foreclosure in Michigan?

Tell us where things stand. A person reads every message and writes back with the options that fit your situation and the free, official help available in Michigan.

  • Free. There is nothing to buy and no fee, ever.
  • No loan number, Social Security number or documents needed.
  • We are not your lender, a law firm or a government agency.

If a sale is days away, do not wait for an email. Call a free HUD-approved housing counselor now at (800) 569-4287.

For example: a sale date, what your servicer has told you, or what changed in your income. Please do not include your loan number, Social Security number or bank details.

Free, and there is nothing to buy. A person reads your message and replies by email, or by phone if you leave a number. We never ask for a fee and we do not sell your details. See the privacy policy.

Sources for this page

  1. MCL 600.3150, Judgment in foreclosure; execution for deficiency
  2. MCL 600.3155, Minimum sale price
  3. MCL 600.5807, Limitations on contract actions
  4. MCL 600.5809, Limitations on actions on judgments
  5. MCL 440.3118, Statute of limitations on notes
  6. MCL 600.4012, Garnishment of periodic payments
  7. MCL 600.3204, Foreclosure by advertisement; circumstances
  8. MCL 600.3205a to 600.3205d, Repealed
  9. MCL 600.3208, Notice of foreclosure; publication; posting
  10. MCL 600.3212, Notice of foreclosure by advertisement; contents
  11. MCL 600.3220, Sale; adjournment
  12. MCL 600.3238, Inspection of property during redemption
  13. MCL 600.3240, Redemption of premises
  14. MCL 600.3252, Disposition of surplus money
  15. MCL 600.3280, Foreclosure by advertisement; deficiency; defenses
  16. MCL 445.1822, Credit Services Protection Act, definitions
  17. MCL 445.1823, Credit Services Protection Act, prohibited conduct
  18. Michigan Legal Help, Foreclosure and Eviction for Homeowners
  19. MSHDA, Michigan Homeowner Assistance Fund application period to end December 8, 2023
  20. MCL 600.3241, Abandonment; conclusive presumption
  21. MCL 600.3241a, Abandonment of residential property; notice
  22. MCL 600.5714, Summary proceedings to recover possession
  23. MCL 600.5744, Writ of restitution; timing