Summary of Michigan's Foreclosure Laws

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If you are facing foreclosure in Michigan, it’s important to understand some of the basics, including:

  • the most common type of foreclosure procedure (judicial v. nonjudicial) used in Michigan
  • how much time you have to respond
  • your rights and protections in the process, and
  • what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).

Below we have outlined some of the most important features of Michigan foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.

Topic

State Rule

Most common type of foreclosure process

Nonjudicial under power of sale

Time to respond

Foreclosing party must publish notice once a week for four consecutive weeks before sale and post a notice on property within at least 15 days of first publication. No notice need be mailed to homeowner.

Reinstatement of loan before sale

Not available (except as required by loan documents)

Redemption after sale

If homeowner occupies property and more than two-thirds of the original mortgage is still owed, redemption allowed for six months. If less than two-thirds is owed, the redemption period is one year. If the property is abandoned, the redemption period is one month. Mich. Comp. Laws § 600.3240

Special protections for foreclosures involving high-cost mortgages

None

Special state protections for service members

Michigan law provides special protections against foreclosure to some military service members. For example, lender cannot foreclose nonjudicially during the service member's period of military service (or within 6 months thereafter) unless a court ordered the sale or foreclosure. Mich. Comp. Laws §§ 32.517, 600.3185, 600.3285

Deficiency judgments

Allowed, but if the mortgage holder buys the property at the foreclosure sale then borrower can contest the amount of the deficiency if the foreclosure sale price was substantially less than the fair market value of the property.

Cash exempted in bankruptcy

About $12,725 for one person, $25,450 for a married couple under federal bankruptcy exemptions

Notice to leave after house is sold

New owner may start eviction proceedings after the redemption period expires.

Foreclosure statutes

Mich. Comp. Laws §§ 600.3101 to 600.3185, 600.3201 to 600.3285

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