State Foreclosure Law

Michigan Foreclosure Laws

Michigan uses non-judicial foreclosure by advertisement (publication) as the primary method under MCL 600.3201 et seq. The mortgage instrument supplies the power of sale; statutory notice is published for four consecutive weeks, and the sale is conducted by the county sheriff.

Process
Non-Judicial
Out of court, under a power of sale §
Foreclosure Length
Varies
Depends on the case
Homestead Exemption
$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
Must file to claim: claim required in bankruptcy · the rule §
Deficiency Judgment
Limited
Allowed (with limitations) §
40 source pages cited · Last checked Mar 10, 2026
Not legal advice. This page provides general information about Michigan foreclosure law based on cited statutes and rules. Every citation links to the official source for verification. Laws change — readers should confirm current statute text and consult a Michigan-licensed attorney for situation-specific advice.

Facing foreclosure? The timeline, your rights and your options are laid out in the Michigan foreclosure guide →

On this page

Governing Statutes

Citation Title Covers
MCL 600.3201 et seq. Foreclosure of Mortgages by Advertisement (Non-Judicial) Primary statutory authority for non-judicial foreclosure by advertisement: conditions for use, notice requirements, publication, sheriff's sale, redemption period, deficiency rights
MCL 600.3204 Conditions for Foreclosure by Advertisement Three conditions that must be met before a mortgage may be foreclosed by advertisement: (1) mortgage contains a power of sale; (2) mortgage has been recorded; (3) default has occurred and ordinary-case § 1024.41 pre-filing rule for a principal-residence mortgage subject to that section has run
MCL 600.3208 Notice of Sale — Publication Requirements Publication of notice of foreclosure sale in a county newspaper for 4 consecutive weeks; content requirements; posting on the property within 15 days after the first publication
MCL 600.3236 Sheriff's Sale Procedures Conduct of foreclosure sale by county sheriff: public auction at courthouse, credit bids, bidding procedures, surplus funds
MCL 600.3240 Redemption Period After Sale Redemption periods: for a home of up to 4 units, 6 months if more than 66-2/3% of the original debt was claimed due at the notice of foreclosure, otherwise 1 year; 1 month or 30 days if abandoned; 6 months for commercial, industrial, or multifamily property over 4 units; 1 year for agricultural property; borrower's right to possession during redemption
MCL 600.3241a Abandoned Property — Reduced Redemption Period Conclusive presumption of abandonment for residential property of up to 4 units when the lender's inspection shows no one is occupying it, the lender posts and mails a notice, and no one responds in writing within 15 days; the redemption period is then 30 days or until that 15-day window ends, whichever is later
MCL 600.3280 Deficiency Judgment — Fair Market Value Defense When the lender or debt holder bought the property at a foreclosure-by-advertisement sale, the borrower may defend a later deficiency action by showing the property was fairly worth the debt or the bid was substantially less than its true value, defeating the deficiency in whole or in part
MCL 600.3101 et seq. Foreclosure of Mortgages by Complaint (Judicial) Alternative judicial foreclosure process by filing a complaint in circuit court; rarely used because non-judicial process is faster

Michigan Foreclosure Process and Your Rights

Michigan uses non-judicial foreclosure. State law does not set one typical length from the first notice to the sale. §

  • After the sale: 6 months after the sheriff's sale for a home of up to 4 units if the amount claimed due at the date of the notice of foreclosure was more than 66-2/3% of the original debt; otherwise 1 year. Shorter periods apply if the property is abandoned under the statute's inspection and notice rules: 1 month (MCL 600.3241), or 30 days or, if later, until the homeowner's 15-day window to say in writing that the home is not abandoned ends (MCL 600.3241a). Agricultural property has 1 year. During the redemption period, the former owner may remain in possession. §
  • Homestead exemption: $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. §
  • Mediation: Michigan does not have a statewide foreclosure mediation program.

Step-by-step timeline, your rights at each stage, mediation, options to keep or leave the home, and what happens after the sale: Read the full Michigan foreclosure guide →

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Regulatory Oversight & Complaint Filing

Michigan homeowners who believe a mortgage servicer or lender has violated state or federal law may file complaints with the following regulatory agencies.

Financial Institutions Regulator
Michigan Department of Insurance and Financial Services (DIFS)
File a complaint →
Attorney General — Consumer Protection
Michigan Attorney General
Consumer protection information →
Housing Finance Agency
Michigan State Housing Development Authority (MSHDA)

Special Foreclosure Types in Michigan

Beyond the standard non-judicial foreclosure process, Michigan law addresses several specialized foreclosure categories.

HOA & Condo Association Foreclosure
Michigan Condominium Act (MCL 559.101 et seq.) allows condominium association assessment liens. §
A condominium association can foreclose its lien by court action or by advertisement, in the same manner as a mortgage foreclosure, after recording a notice of lien and mailing it to the co-owner at least 10 days before starting the foreclosure; the redemption period is 6 months from the sale, or 1 month if the property is abandoned (MCL 559.208).
Tax Lien Foreclosure
Michigan Department of Treasury describes a three-year property-tax forfeiture and foreclosure process under MCL 211.78a-211.78m. §
Property is forfeited to the county treasurer in the second year of delinquency; unpaid property is foreclosed by the foreclosing governmental unit in the third year after the statutory notice and court process.
Land Contract Protections
A Michigan land contract seller can recover possession through summary proceedings in court after forfeiture, but only after the buyer (vendee) is served with a written notice of forfeiture; unless the parties agreed in writing to a longer time, the buyer has 15 days after service to pay the amounts due and cure other material breaches, or deliver possession (MCL 600.5726, 600.5728). §
After a judgment for possession based on forfeiture, the writ of restitution cannot issue until 90 days after judgment if less than 50% of the purchase price has been paid, or 6 months if 50% or more has been paid, and paying the judgment amount with costs and curing other material breaches within that time prevents the writ (MCL 600.5744(4), (7)).
Manufactured & Mobile Home Rules
Manufactured homes titled as personal property are repossessed under Article 9 UCC procedures. §
Manufactured homes affixed to land and titled as real property are foreclosed under MCL 600.3201 et seq.
Reverse Mortgage (HECM)
HECM reverse mortgage foreclosures proceed under Michigan's general foreclosure procedures, by advertisement (MCL 600.3201 et seq.) or in circuit court (MCL 600.3101). §
Federal HUD rules add HECM requirements, including counseling before the loan for the borrower and any non-borrowing spouse, and a Deferral Period for an eligible non-borrowing spouse who meets HUD's conditions.
Zombie Mortgage Protections
Michigan does not have specific zombie mortgage legislation as of 2026. §
General limitation periods may apply to dormant second mortgages: a foreclosure must be started within 15 years after the mortgage becomes due or within 15 years after the last payment was made on the mortgage (MCL 600.5803), and a suit for money owed generally has 6 years for breach of contract or 10 years for an action founded on a covenant in a mortgage (MCL 600.5807).
PACE Lien Assessment
Michigan's Property Assessed Clean Energy Act, MCL 460.931-460.949, authorizes local governments to adopt PACE programs.
Program availability and the effect of a particular assessment on lien priority require jurisdiction- and transaction-specific verification.

Lien Priority in Michigan

First to record under Michigan's race-notice recording statutes (MCL 565.29). A subsequent purchaser or mortgagee who records first and pays value without notice of a prior unrecorded interest takes priority.

IRS Tax Lien
Federal tax liens subordinate to prior recorded mortgages.

Michigan's 3-year tax delinquency to foreclosure pipeline (county forfeiture and state foreclosure) creates significant title issues in Detroit and other distressed markets. Tax lien super-priority means even a fully current mortgage can be wiped out by tax foreclosure if the borrower stops paying taxes.

Statute of Limitations in Michigan

Mortgage Foreclosure
15 years §
Michigan has a 15-year statute of limitations for mortgage foreclosure under MCL 600.5803: a foreclosure must be started within 15 years after the mortgage becomes due or within 15 years after the last payment was made on the mortgage. The statute applies to foreclosure by advertisement as well as to foreclosure actions in the courts.
Written Contracts
6 years §
Promissory Note
6 years
Deficiency Judgment
Varies §
No specific short deficiency window in Michigan for non-judicial foreclosure (unlike some states with 90-day windows). The limitation period depends on the claim: 6 years for an action to recover money due for breach of contract (MCL 600.5807(9)), or 10 years for an action founded on a covenant in a deed or mortgage of real estate (MCL 600.5807(5)).

Probate & Inheritance in Michigan

When a mortgaged property owner dies, foreclosure proceedings interact with the probate process. Michigan law establishes specific rules for estate notification, heir protections, and the rights of executors to cure defaults.

Pause When the Borrower Dies
State law doesn't pause a foreclosure when the borrower dies, so it can go on during probate.
Notification to Estate
The lender must notify the estate or personal representative before proceeding.
Foreclosure notice must be served on the personal representative of a deceased borrower's estate.
Heir Protections
Heirs who inherit and occupy the property as a primary residence may seek confirmation as successors in interest under 12 CFR 1024.31 and submit a loss-mitigation application.
Executor Reinstatement Rights
The executor or personal representative may reinstate the mortgage by curing the default.
Garn-St. Germain Act
Due-on-sale clause may not be enforced against heirs inheriting and occupying the property as primary residence under Garn-St Germain, 12 U.S.C. 1701j-3.
Uniform Partition of Heirs Property Act (UPHPA)
Not adopted in this state.

Consumer Protection & Compliance in Michigan

State consumer protection statutes, foreclosure rescue fraud laws, and professional compliance rules that apply to mortgage servicing and foreclosure-related services in Michigan.

UDAP Statute
Michigan Consumer Protection Act (MCPA) §
Prohibits unfair, unconscionable, or deceptive methods, acts, or practices in the conduct of trade or commerce including mortgage-related dealings.
Foreclosure Rescue Fraud Laws
Michigan foreclosure rescue fraud can be covered under the MCPA (MCL 445.901), which makes unfair, unconscionable, or deceptive practices in trade or commerce unlawful, subject to its exemptions.
Under the federal Mortgage Assistance Relief Services Rule, companies offering mortgage relief generally can't collect fees until they deliver a written offer of mortgage relief from the homeowner's lender or servicer and the homeowner agrees to it.
Attorney Advertising Rules
Michigan Rules of Professional Conduct (MRPC 7.2 and 7.3) govern attorney advertising. §
Lead Generation Restrictions
No Michigan-specific lead generation statute for foreclosure defense identified beyond MIHAF/MSHDA program rules and State Bar advertising rules.
Barratry
Barratry statutes apply. Solicitation of foreclosure-related legal work is restricted.
MRPC 7.3 prohibits in-person or telephone solicitation of prospective clients when a significant motive is pecuniary gain.

Legal Aid & Pro Bono Resources in Michigan

  • ⚖
    Legal Aid & Defender Association of Detroit
    Area served: Wayne County (Detroit metro).
    ladadetroit.org →
  • ⚖
    Michigan Legal Help / Wolverine Legal Aid
    Area served: Statewide online self-help portal and referrals.
    michiganlegalhelp.org →
  • ⚖
    Neighborhood Legal Services of Michigan
    Area served: Oakland County and surrounding communities.
    lsnm.org →
  • ⚖
    Michigan Advocacy Program
    Area served: Western Michigan (Grand Rapids area).
    lawestmi.org →
  • ⚖
    Legal Services of South Central Michigan
    Area served: Washtenaw, Lenawee, and Monroe counties.
    lsscm.org →
  • 🏠
    HUD-Approved Housing Counselors
    Free, federally funded housing counseling agencies in Michigan. Services include loan modification applications, mediation preparation, and loss mitigation guidance.
    Find a counselor in Michigan →
  • 📞
    Michigan DIFS Consumer Hotline
    Complaints about mortgage servicers and lenders regulated in Michigan
    1-877-999-6442 →
  • 📞
    HUD Housing Counseling Hotline
    Free foreclosure prevention counseling referrals
    1-800-569-4287 →
  • 📞
    Michigan AG Consumer Protection Hotline
    Mortgage fraud and foreclosure rescue scam complaints
    1-877-765-8388 →
  • 📞
    Michigan Legal Help Hotline
    Legal referrals for low-income Michigan homeowners facing foreclosure
    1-844-732-7439 →
  • 📋
    State Bar of Michigan Lawyer Referral Service
    State bar lawyer referral service.
    lrs.michbar.org →
  • 🎓
    Detroit Metropolitan Bar Association Pro Bono
    Pro bono foreclosure defense and housing law services in the Detroit metropolitan area
    detroitlawyer.org →
  • 🎓
    State Bar of Michigan Pro Bono Initiatives
    Coordinates statewide pro bono legal services including foreclosure defense
    michbar.org/alawyerhelps/probonoservmi →

Find Help in Michigan

We maintain a verified directory of free and low-cost help providers in Michigan. All are government-approved or federally funded.

59 HUD-approved housing counselors Free foreclosure prevention counseling 5 Legal aid offices Free legal representation for qualifying homeowners 42 Credit counseling agencies DOJ-approved pre-bankruptcy credit counseling 46 Debtor education providers Required post-filing debtor education courses

Browse all 152 providers in Michigan →

National Foreclosure Guides

These guides explain foreclosure at the federal level — homeowner rights, available options, and recommended steps at each stage. They apply in every state, including Michigan.

Facing Foreclosure?
Overview of the process, available options, and free help resources
How to Stop Foreclosure
Immediate options — forbearance, modification, legal aid, bankruptcy
Your Rights in Foreclosure
Federal protections under CFPB Regulation X and loss mitigation rules
How Foreclosure Works
Stage-by-stage walkthrough from missed payments to sale
Behind on Your Mortgage?
Options for borrowers who have missed or expect to miss a payment
Bankruptcy & Foreclosure
How Chapter 7 and Chapter 13 can stop or delay foreclosure

Michigan Distress Data

The American Distress Index tracks household financial distress at the national level. Here are ADI indicators with particular relevance to Michigan homeowners:

Foreclosure Filings
National trend
National foreclosure filings. Michigan mainly uses non-judicial foreclosure (trustee's sales outside court).
FHA mortgage delinquency
FHA delinquency rate
Share of FHA loans at least one payment behind, from the Mortgage Bankers Association's quarterly survey.
Foreclosure volume
Foreclosure starts & completions
Monthly foreclosure starts and completions from ATTOM Data Solutions.
Newly late mortgages
Current to 30 days late
Share of mortgages moving from current to 30 days past due, from Cotality (formerly CoreLogic).

See the full picture: Foreclosure Statistics 2026 | Mortgage Delinquency Statistics 2026

Facing foreclosure in Michigan? Tell me what's going on.

Answer a few quick questions and I'll connect you with someone who can help where you live. It's free.

Step 1 of 4

Tell me about your situation

Select all that apply.

It's free. I don't sell your information, and no one pays me for your request. I share your details only with the one attorney, agent or provider I connect you with. Privacy · Prefer to call? (888) 602-4161

Ask a question about foreclosure law in Michigan

General information, not legal advice.

🛟
Free help also exists in Michigan: the Michigan DIFS Consumer Hotline at 1-877-999-6442, or a HUD-approved housing counselor at no cost.