How foreclosure works in Michigan

The notices you will receive in Michigan, in order

1. Letters from your servicer

   From your servicer while you are behind, before the foreclosure can start

   Michigan once required a notice offering a meeting with a housing counselor before foreclosure, but that law was repealed effective June 30, 2013. Today the main waiting period is the federal one, so foreclosure generally cannot start until you are more than 120 days behind. Use that time to apply for help and call a housing counselor.

   MCL 600.3205a (repealed); 12 C.F.R. § 1024.41(f)

2. Notice of default and intent to foreclose (abandoned homes only)

   Sent by certified mail within 30 days before the foreclosure begins, only if the lender plans to treat the home as abandoned

   If the lender believes nobody lives in the home, it must mail this notice, record a sworn statement that its inspection found the home empty, and mail you a copy. If you live there or plan to, you can stop the shortened redemption period by giving the lender a sworn statement saying so and recording a copy with the county register of deeds before the redemption period ends.

   MCL 600.3241

3. Notice of foreclosure by advertisement

   Published in a newspaper in your county once a week for 4 weeks in a row before the sale

   This notice starts the foreclosure. It lists the amount the lender claims, the sale date, the length of your redemption period, and the name and phone number of the foreclosing attorney. It also warns that you may be held responsible for damage to the home during the redemption period.

   MCL 600.3208, 600.3212

4. Copy of the notice posted on your home

   Posted within 15 days after the first newspaper publication

   The same notice is posted in a noticeable place on the property. Many people learn about the foreclosure this way, because the newspaper notice is easy to miss. Write down the sale date and the attorney's phone number and act right away.

   MCL 600.3208

5. Notice of adjournment

   Posted at the sale location before or at the scheduled sale time

   The sheriff can postpone the sale at the lender's request, more than once. If the delay is longer than one week, the notice must also be published in the same newspaper within 10 days and then once each week of the delay. No one has to announce it out loud.

   MCL 600.3220

6. Sheriff's deed and the buyer's redemption affidavit

   Recorded with the county register of deeds after the sheriff's sale

   The deed shows the date your redemption period ends. The buyer records a sworn statement of the exact amount needed to redeem, including any daily interest. You can get these from the county register of deeds.

   MCL 600.3240(1), (2)

7. Summons and complaint for possession

   Filed in court by the buyer only after the redemption period ends

   If you are still in the home after the redemption period, the buyer must file an eviction case in court. Read the papers for your court date and go. If the court orders eviction, Michigan Legal Help says you usually have 10 days to leave.

   MCL 600.5714(1)(g)

The legal steps in Michigan

1. Missed payments and the federal waiting period

   Your servicer generally cannot start a foreclosure until you are more than 120 days behind. Michigan no longer has its own pre-foreclosure meeting or loan modification step, so use this time to apply to your servicer and call a housing counselor.

   12 C.F.R. § 1024.41(f)

2. Notice of foreclosure is published and posted

   The lender publishes a notice of foreclosure by advertisement once a week for four weeks in a newspaper in your county. A copy must be posted in a noticeable place on the property within 15 days after the first publication. The notice states the amount claimed, the sale date and the length of your redemption period.

   MCL 600.3208, 600.3212

3. The sheriff's sale

   The home is sold at public auction to the highest bidder, at the place where the circuit court is held in your county. The sale can be postponed by posting a notice at the sale location. Before the sale, you can still stop it by working something out with the lender, paying what you owe or filing bankruptcy.

   MCL 600.3212, 600.3220

4. The redemption period

   After the sale you can buy the home back by paying the winning bid, interest at your mortgage rate and certain costs. For most homes the period is six months. You can stay in the home and do not have to make mortgage payments during this time, but the buyer may inspect the property.

   MCL 600.3240, 600.3238

5. Redemption ends and the deed becomes final

   If you do not redeem by the date shown on the sheriff's deed, the buyer becomes the owner. If you plan to move out, Michigan Legal Help says to tell the buyer at least 10 days before you leave.

   MCL 600.3240

6. Eviction

   If you are still in the home after the redemption period ends, the buyer can file a summary eviction case in court. If the court enters a judgment for possession, the order removing you cannot issue until 10 days after that judgment, unless an exception applies.

   MCL 600.5714(1)(g), 600.5744(5)

Common questions in Michigan