State Foreclosure Law
Michigan Foreclosure Laws
Michigan uses non-judicial foreclosure by advertisement (publication) as the primary method, governed by MCL 600.3201 et seq.
Research depth: Standard · Last reviewed March 10, 2026 · Awaiting attorney validation
20 cited
32 needs check
8 gaps
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.
For a step-by-step guide to options and resources, see the Michigan Foreclosure Guide →
On this page
- 01 Governing statutes
- 02 Foreclosure process
- 03 Homeowner protections
- 04 Mediation
- 05 Regulatory bodies & complaint filing
- 06 Alternatives & financial assistance
- 07 Post-sale proceedings
- 08 Special foreclosure types
- 09 Lien priority
- 10 Statute of limitations
- 11 Probate & inheritance
- 12 Consumer protection & compliance
- 13 Legal aid & pro bono resources
- 14 Find help in Michigan
- 15 National foreclosure guides
- 16 Michigan distress data
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 120-day federal wait has run |
| MCL 600.3205 | Notice to Borrower Before Publication (Pre-Foreclosure Notice) | Requirement to serve 14-day notice on borrower before first publication of foreclosure notice, informing borrower of right to housing counseling |
| 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 at property and county courthouse |
| 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 | 6-month redemption period for residential properties; 1-month period for abandoned properties; 12-month period for commercial/agricultural properties; borrower's right to possession during redemption |
| MCL 600.3241a | Abandoned Property — Reduced Redemption Period | Reduction of redemption period to 1 month if property has been abandoned for 35+ days as shown by affidavit |
| MCL 600.3280 | Deficiency Judgment — Fair Market Value Defense | After non-judicial sale, borrower may raise FMV of property at time of sale as a defense in any deficiency action; court determines FMV; deficiency limited to amount debt exceeds FMV |
| 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 |
Non-Judicial Foreclosure Process
Awaiting verification1
Pre-Foreclosure Default and 120-Day Wait
At least 120 days after first delinquency (federal requirement)
Before initiating foreclosure, the servicer must comply with federal CFPB Regulation X: single point of contact, loss mitigation evaluation, and mandatory 120-day delinquency wait before making the first foreclosure filing. Michigan's MCL 600.3204 also requires the mortgage to be in default and recorded.
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2
14-Day Pre-Publication Notice to Borrower
At least 14 days before first publication
Before the first publication of the foreclosure notice, the lender/servicer must serve a 14-day notice on the borrower. The notice must inform the borrower of the right to seek housing counseling, the total amount needed to cure the default, and contact information for the lender. Service is by certified mail and posting on the property.
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3
Record Assignment and Prepare Notice of Sale
Before first publication
The lender or servicer must record all mortgage assignments so that the chain of title from origination to current holder is complete in the county records before publishing the foreclosure notice. The party foreclosing must have a properly recorded chain of title.
4
Publication of Notice of Sale (4 Consecutive Weeks)
4 weeks of consecutive publication; sale at least 28 days after first publication
The Notice of Sale must be published in a newspaper printed in the county where the property is located for 4 consecutive weeks (4 insertions, one per week). The notice must include: property legal description, street address, amount due, sale date and time, name of original mortgagor, name of current holder, and name of foreclosing attorney.
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5
Posting on Property and at Courthouse
At least 15 days before sale
In addition to publication, the Notice of Sale must be physically posted on the property itself at least 15 days before the sale. Some counties also require posting at the county courthouse. The posting must be prominently displayed at the property.
6
Sheriff's Sale (Public Auction)
At least 28 days after first publication; typically 5-6 weeks after first publication
The property is sold at public auction at the county courthouse by the county sheriff on the date specified in the Notice. The highest bidder wins. The lender may credit bid up to the outstanding debt. The successful purchaser receives a Sheriff's Certificate (not a deed) at the time of sale — the actual deed is issued only after the redemption period expires.
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7
Redemption Period (6 Months Standard)
6 months from date of sale (standard); 1 month if abandoned; 3 months if balance ≤ 2/3 of original loan
After the sheriff's sale, Michigan law provides a 6-month redemption period for residential properties (less than 3 acres with a dwelling). During this period: (1) the borrower (or any party with a recorded interest) may redeem the property by paying the full sale price plus interest; (2) the former owner may remain in possession of the property; (3) the former owner remains responsible for property taxes and insurance. If the property is found to be abandoned for 35+ days (by affidavit), the redemption period is reduced to 1 month. If the outstanding balance at time of sale was 2/3 or less of the original principal, the redemption period may be reduced to 3 months.
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8
Expiration of Redemption / Sheriff's Deed
At end of redemption period (6 months or less from sale)
If no redemption occurs, at the expiration of the redemption period the purchaser's Sheriff's Certificate converts to a full Sheriff's Deed (MCL 600.3236, 600.3240). The Sheriff's Deed is recorded and vests fee simple title in the purchaser. The former owner loses all right, title, and interest in the property. Eviction proceedings may then be initiated.
9
Summary Proceedings / Eviction (If Necessary)
After redemption period expires; eviction proceedings typically 30-60 additional days
After the redemption period expires, if the former owner or tenants have not vacated, the new owner may file summary proceedings in District Court for possession. Federal PTFA provides 90-day notice to bona fide tenants. Detroit Land Bank and other local programs may also be involved in vacant property management.
Homeowner Protections
Awaiting verificationHomestead Exemption
$40,475 per person (adjusted periodically); may be doubled for married couples in bankruptcy — $80,950 combined. Additional $15,000 exemption available for homestead in some circumstances. Amounts subject to periodic adjustment.
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Automatic — no filing required. Does not protect against foreclosure by the mortgage holder (only judgment creditors).
Deficiency Judgment
Allowed with limitations
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Michigan does not have a specific short window for deficiency actions like some states. The lender may bring a separate civil action for deficiency after the redemption period expires and the sheriff's deed vests.
Right of Redemption
6 months after the sheriff's sale for residential properties (standard).
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Pre-sale reinstatement available. Before the foreclosure sale.
Right to Cure
Borrower may reinstate the mortgage at any time before the sheriff's sale by paying all arrears, fees, and costs (not the full accelerated balance)
All arrears, late charges, attorney fees, and costs — not the full accelerated balance pre-sale
Foreclosure Mediation in Michigan
Michigan does not have a mandatory statewide foreclosure mediation program. Federal loss mitigation requirements under CFPB Regulation X still apply to all servicers.
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)
Housing Finance Agency
Michigan State Housing Development Authority (MSHDA)
Alternatives & Financial Assistance
Michigan law permits several alternatives to foreclosure. Short sales are available with potential deficiency protection. Deed in lieu of foreclosure may be negotiated with the servicer. Forbearance agreements are available under federal and state loss mitigation requirements. Loan modification programs exist at both the federal and state level.
Michigan's Michigan Homeowner Assistance Fund (MIHAF) (Active — verify current availability directly with MSHDA. Treasury period of performance extends through 2026.) provides mortgage assistance to qualifying homeowners. Program details: michigan.gov/mshda/pathway-to-housing/mihaf-homeowner-assistance.
For a detailed breakdown of foreclosure alternatives, loss mitigation options, and financial assistance programs, see the Michigan Foreclosure Guide.
Post-Sale Proceedings Under Michigan Law
After a foreclosure sale in Michigan, the new owner must provide written notice before initiating eviction proceedings. A minimum of 7 days' notice is required.
Surplus fund rights after a Michigan foreclosure sale are governed by state statute. Federal law (Protecting Tenants at Foreclosure Act) provides a minimum 90-day notice period for bona fide tenants in foreclosed properties, regardless of state timelines.
For guidance on what to do after a foreclosure sale, including eviction timelines, surplus fund claims, and tax consequences, see the Michigan Foreclosure Guide.
Special Foreclosure Types in Michigan
Beyond the standard judicial and non-judicial foreclosure process, Michigan law addresses several specialized foreclosure categories.
HOA & Condo Association Foreclosure
Available under state law.
Tax Lien Foreclosure
See details.
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Land Contract Protections
Land contracts are not commonly used.
Manufactured & Mobile Home Rules
Federal rules apply.
Reverse Mortgage (HECM)
Federal HECM rules apply.
Zombie Mortgage Protections
No specific zombie mortgage statute, but general legal tools are available.
PACE Lien Assessment
PACE financing is not authorized.
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
Written Contracts
6
Promissory Note
6
Deficiency Judgment
6
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.
Automatic Stay on Death
No automatic stay. Foreclosure may proceed 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 be successors in interest under 12 CFR 1024.
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.
Uniform Home Protection 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)
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Prohibits unfair, unconscionable, or deceptive methods, acts, or practices in the conduct of trade or commerce including mortgage-related dealings.
Foreclosure Rescue Fraud Laws
Specific foreclosure rescue fraud statute exists.
Michigan foreclosure rescue fraud covered under MCPA (MCL 445.
Attorney Advertising Rules
Michigan Rules of Professional Conduct (MRPC 7.
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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.
Legal Aid & Pro Bono Resources in Michigan
- Legal Aid & Defender Association of DetroitWayne County (Detroit metro) legal aid.ladadetroit.org →
- Michigan Legal Help / Wolverine Legal AidStatewide online self-help portal and referrals legal aid.michiganlegalhelp.org →
- Neighborhood Legal Services of MichiganOakland County and surrounding communities legal aid.nlsmi.org →
- Michigan Advocacy ProgramWestern Michigan (Grand Rapids area) legal aid.legalaidwestmichigan.org →
- Legal Services of South Central MichiganWashtenaw, Lenawee, and Monroe counties legal aid.lsscm.org →
- HUD-Approved Housing CounselorsFree, 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 HotlineComplaints about mortgage servicers and lenders regulated in Michigan1-877-999-6442 →
- Michigan AG Consumer Protection HotlineMortgage fraud and foreclosure rescue scam complaints1-877-765-8388 →
- MIHAF / MSHDA HotlineMichigan Homeowner Assistance Fund inquiries and applications1-844-756-4423 →
- Michigan Legal Help HotlineLegal referrals for low-income Michigan homeowners facing foreclosure1-844-732-7439 →
- Detroit Metropolitan Bar Association Pro BonoPro bono foreclosure defense and housing law services in the Detroit metropolitan areadetroitlawyer.org →
- State Bar of Michigan Pro Bono InitiativesCoordinates statewide pro bono legal services including foreclosure defensemichbar.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.
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
Michigan has both judicial and non-judicial foreclosure processes.
The FHA Signal
FHA delinquency rate
FHA serious delinquency rate — the canary in the coal mine for borrowers with thin down payments.
The Pipeline
Foreclosure starts & completions
Monthly foreclosure starts and completions from CoreLogic — the volume flowing through the system.
First Missed
Early-stage transitions
Borrowers transitioning from current to 30-days late — the earliest warning signal before delinquency rises.
See the full picture: Foreclosure Statistics 2026 | Mortgage Delinquency Statistics 2026
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Free help is available for homeowners facing foreclosure in Michigan. Contact the Michigan DIFS Consumer Hotline at 1-877-999-6442 or find a HUD-approved housing counselor for no-cost assistance.