Michigan
Foreclosure Law
Summary
Quick
Facts
-
Judicial Foreclosure Available:
Yes
-
Non-Judicial Foreclosure
Available: Yes
- Primary
Security Instruments: Deed of
Trust, Mortgage
-
Timeline: Typically 60
days
- Right
of Redemption:
Yes
-
Deficiency Judgments Allowed:
Varies
In Michigan,
lenders may foreclose on deeds of
trusts or mortgages in default
using either a judicial or
non-judicial foreclosure
process.
Judicial
Foreclosure
In judicial
foreclosure, a court decrees the
amount of the borrowers debt and
gives him or her a short time to
pay. If the borrower fails to pay
within that time, then the court
will issue a notice of
sale.
Non-Judicial
Foreclosure
The
non-judicial process of
foreclosure is used when a power
of sale clause exists in a
mortgage or deed of trust. A
"power of sale" clause is the
clause in a deed of trust or
mortgage, in which the borrower
pre-authorizes the sale of
property to pay off the balance
on a loan in the event of the
their default. In deeds of trust
or mortgages where a power of
sale exists, the power given to
the lender to sell the property
may be executed by the lender or
their representative, typically
referred to as the trustee.
Regulations for this type of
foreclosure process are outlined
below in the "Power of Sale
Foreclosure
Guidelines".
Power of
Sale Foreclosure
Guidelines
If the deed of
trust or mortgage contains a
power of sale clause and
specifies the time, place and
terms of sale, then the specified
procedure must be followed.
Otherwise, the non-judicial power
of sale foreclosure is carried
out as follows:
- A notice of
sale must be published once a
week for four (4) in a
newspaper of general
circulation in the county where
the property is located. The
notice must also be posted on
the property at least fifteen
(15) days after the first
notice of sale is
published.
- The notice
must contain the borrower and
lenders name, a description of
the property, the terms of the
sale and the time, place and
date of the sale.
- The sale
must be made at public auction
to the highest bidder. The
trustee or the sheriff of the
county, if different, may
conduct the sale between the
hours of 9:00 am and 4:00 pm on
the date specified in the
notice of sale.
- The sale may
be postponed by posting a
notice at the time and place
where the sale was to
originally be held. If the
postponement is for more than
one week, it must also be
published in the manner as the
original notice of sale was
given.
More information on Michigan
foreclosure laws.
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