Michigan Foreclosure Law
Michigan foreclosures are primarily handled out of court. The
foreclosure process can take 3-14 months depending on the length
of the redemption period. The typical foreclosure takes about
eight months.
Pre-foreclosure Period
Court foreclosures are permitted in Michigan; however, most
mortgages contain a clause enabling a lender to sell a property
out of court once a borrower defaults. While Michigan law does
not require that a lender send out a default notice to the
borrower before scheduling a foreclosure sale, the mortgage may
require the notification. The borrower's right to stop the
foreclosure by paying off the default is also dictated by the
mortgage.
Notice of Sale / Auction
The foreclosure sale usually occurs about two months after
the lender starts the foreclosure process. A notice of sale is
published once per week for four weeks in a local newspaper, and
the sale may not be less than 28 days from the first publication
date. The notice is also posted on the property during the
publication period. The notice of sale must contain the lender
and borrower names, mortgage information, the default amount, a
legal description of the property, and the length of the
redemption period. A trustee or sheriff conducts the public
auction between 9:00 a.m. and 4:00 p.m., usually at the county
courthouse. Anyone may bid, and the property is sold to the
winning bidder. The sale may be postponed by posting a notice of
adjournment at the time and location of the sale. The person
conducting the sale completes the necessary documents to
transfer ownership to the winning bidder at the sale, and those
documents must state the redemption expiration. The redemption
period varies, but typically runs six months from the
foreclosure sale date. During this time, the borrower can redeem
the property by paying the winning bid amount and applicable
costs.
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