Facing Foreclosure in Michigan?

Michigan uses non-judicial foreclosure. No law sets one length for the whole process. The lender or trustee sets the sale date, so the total depends on its schedule and any postponements. When 12 C.F.R. § 1024.41 applies to a principal-residence mortgage, the rule generally bars a servicer in an ordinary delinquency-based foreclosure from making the first notice or filing until the loan is more than 120 days delinquent. Limited exceptions apply to due-on-sale violations and joining a superior or subordinate lienholder's foreclosure. Some state notices that are only mailed to you can come during that wait. Michigan law sets these steps, each with its own minimum: Newspaper notice: four weeks of ads before the sale (MCL 600.3208).

Often there are still ways to try, though none is guaranteed: (1) Reinstatement — paying what you're behind, plus fees, to bring the loan current, if your mortgage or your lender allows it. (2) Loan modification — if 12 C.F.R. § 1024.41 applies to a mortgage secured by your principal residence and no § 1024.30 exemption applies, including exemptions for small servicers, reverse-mortgage transactions, and qualified lenders, a complete application received more than 37 days before a scheduled sale generally requires evaluation for available options and a written decision; the rule does not require a particular modification. (3) Forbearance — a temporary pause on payments, if your servicer agrees. (4) Bankruptcy — filing generally creates an automatic stay that can stop a foreclosure sale while it lasts, though the stay has exceptions and can last only a short time in some cases. (5) Short sale — selling the home for less than you owe, if your lender approves.

Michigan limits deficiency judgments: whether the lender can collect the rest depends on the loan, the kind of sale and the rules below. Michigan does not have a specific short window for deficiency actions like some states. The limitation period depends on the claim: 10 years for an action founded on a covenant in a deed or mortgage of real estate, and 6 years for other breach-of-contract actions for money due (MCL 600.5807). Michigan provides an FMV defense: under MCL 600.3280, when the lender or other holder of the debt bought the property, directly or indirectly, at a foreclosure-by-advertisement sale and then sues for a deficiency, the borrower (or anyone else liable on the debt) may show that the property was fairly worth the amount of the debt at the time and place of sale, or that the amount bid was substantially less than its true value. That showing can defeat the deficiency judgment in whole or in part. The defense does not apply to court-ordered foreclosure sales. This is a meaningful protection when properties sell at distressed auction prices below true market value. Michigan provides an FMV defense: under MCL 600.3280, when the lender or other holder of the debt bought the property, directly or indirectly, at a foreclosure-by-advertisement sale and then sues for a deficiency, the borrower (or anyone else liable on the debt) may show that the property was fairly worth the amount of the debt at the time and place of sale, or that the amount bid was substantially less than its true value. That showing can defeat the deficiency judgment in whole or in part. The defense does not apply to court-ordered foreclosure sales. This is a meaningful protection when properties sell at distressed auction prices below true market value.

Yes. HUD-approved housing counseling agencies give foreclosure-prevention counseling for free, and a counselor can help you talk to your servicer. HUD lists 59 approved counseling agencies in Michigan; its referral line is 1-800-569-4287.

As Michigan law sets it: $51,150, or $76,725 if the debtor or a dependent of the debtor is at least 65 years old or disabled when the bankruptcy petition is filed. Michigan Treasury's January 30, 2026 notice makes these adjusted limits applicable to cases filed on or after April 1, 2026. MCL 600.5451(1)(m) is a Michigan bankruptcy exemption, not a defense to consensual mortgage foreclosure. Subsection (2) excludes a consensually granted mortgage, lien, or security interest from the exemption, and subsection (4) requires periodic inflation adjustments by the state treasurer.

Government-backed loans have their own rules on top of Michigan law. FHA requires a meeting or reasonable efforts to arrange one in covered defaults. Current rules allow approved remote methods; exceptions and timing requirements apply. VA and USDA set their own help options for the loans they back; the forbearance guide and loan modification guide explain each program's options, with the rule behind each one.

Federal PTFA provides 90-day notice to bona fide tenants after foreclosure sale. Michigan law (MCL 554.134) lets either party end a tenancy at will by giving 1 month's notice. New owner after foreclosure must comply with PTFA for bona fide tenants with leases signed before notice of foreclosure.

Possibly. If a foreclosure sale brings in more than is owed, the extra is called surplus. The costs of the sale, the debt being foreclosed and other liens on the home, such as a second mortgage, are generally paid first, and in some states a court decides who gets what is left. In Michigan: Surplus money left after satisfying the mortgage and paying the costs and expenses of the foreclosure and sale is paid over on demand to the former owner (the mortgagor) or the owner's legal representatives or assigns. If a junior mortgage or lien holder files a sworn written claim, the person who made the sale pays the surplus to the clerk of the circuit court, and the court takes proofs and orders how the surplus is paid. The former owner can demand the surplus from the officer or other person who made the sale; if a junior mortgage or lien holder files a sworn written claim before it is paid over, the surplus goes to the clerk of the circuit court and the court decides how it is paid. The court, county clerk or trustee who handled the sale can tell you whether any surplus is being held.

Generally, no. HAF programs, including the Michigan Homeowner Assistance Fund (MIHAF), can't commit new money after September 30, 2026 (Treasury). If the program approved you before then, ask it about payments still being processed.

Possibly, with your lender's approval. In Michigan, a deficiency waiver (a release of the remaining balance) can be negotiated as part of a short sale approval. Short sales available with servicer approval. Michigan's fair-value defense to a deficiency judgment (MCL 600.3280) applies to a deficiency suit after a foreclosure sale by advertisement at which the lender bought the property, not to a short sale. The CFPB notes that in some states a lender can sue for the remaining balance after a short sale unless it waives the deficiency, and says to get any waiver in writing. Whether the lender can still collect the rest depends on the terms it agrees to.