For homeowners facing foreclosure in Michigan, the following is a summary of the state’s foreclosure laws:
Foreclosures in Michigan can be judicial, meaning the bank must file a lawsuit in court in order to foreclose.
Foreclosures in Michigan can also be nonjudicial but a court must confirm the sale.
Michigan law requires a notice published in a local newspaper for four consecutive weeks at least once per week to begin the foreclosure. Fifteen days after the first publication, a copy of the notice has to be posted in on the property.
Michigan law does not require the bank to notify the homeowner of the foreclosure, though most mortgages in Michigan do require the bank to send a 30-day notice of default to the homeowner before starting foreclosure proceedings.
Michigan Foreclosure Protections
Michigan law provides protections in accordance with the federal Service Members Civil Relief Act.
Also, Michigan law provides special protections against foreclosure to members of the Michigan national guard in the following circumstances:
- The homeowner sought the mortgage before becoming a service member
- The homeowner is deployed overseas.
Any nonjudicial foreclosure during military service or six months after is invalid unless approved by a court.
Reinstatement and Redemption
There is no legal right to reinstate before the foreclosure sale in Michigan, most banks give homeowners a chance to reinstate.
In Michigan, the redemption period is:
- One year if the homeowner owes less than two-thirds of the original loan amount.
- Six months if the homeowner owes more than two-thirds of the original loan amount
- One month if the home is abandoned.
There is no anti-deficiency law in Michigan, though the bank can request a deficiency judgment following a nonjudicial foreclosure. The homeowner can contest the debt if:
- The bank was the buyer at the foreclosure sale
- The foreclosure sale price was less than the market value of the home
Under Michigan law, the foreclosed homeowners can live in the home during the redemption period.
The new owner has to wait until the redemption period ends to start eviction proceedings, though the former owners have to grant the new owner inspection access to the property during the redemption period. The new owner can start the eviction process before the end of the redemption period expires if:
- The former homeowners refuse inspection
- The former homeowners damage the home
- Damage to the home is expected
For information regarding how to avoid foreclosure in Michigan, visit HUD.gov.