Michigan Laws

Michigan foreclosures are generally conducted through non-judicial proceedings, due to the presence of Powers of Sale clauses in Michigan mortgages. A Power of Sale clause allows a lender to pursue a foreclosure without the need for a court hearing if the homeowner defaults on their loan. The lender usually notifies the homeowner when beginning the foreclosure process, although Michigan foreclosure law does not require it. The homeowner's right to stop the foreclosure before the sale (which is generally provided in other states) is decided by the individual mortgage agreements in Michigan. A sale usually does not occur until two months after the homeowner is found to be in default.

Before a foreclosure sale, the lender must publish a Notice of Sale for four weeks directly prior to the sale date in a local weekly newspaper. A copy of the Notice of Sale must also appear on the property itself. If a sale is postponed for over a week's time, the second sale date must be at least a month in the future.

At the sale, which takes place at the county courthouse, the Sheriff auctions off the homeowner's property to the highest bidder. The winning bidder receives a Certificate of Sale which entitles them to full ownership rights once the amount of the winning bid has been paid.

Redemption rights in Michigan vary, but generally the homeowner has six months after the date of sale in which to redeem ownership of their property by paying off the full sale price plus interest to the lender.

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