Michigan Foreclosure Process and Laws

 


Quick Facts About the Foreclosure Process in Michigan

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

Lenders in Michigan can foreclose mortgages in default through a judicial or non-judicial foreclosure process.

Judicial Foreclosure
In this foreclosure, the court sets a time period for the borrower to pay his debts. If he is not able to pay within this time period, the property will then be up for sale.

Non-Judicial Foreclosure
When a power of sale clause is present in a mortgage or deed of trust, this means that the borrower has pre-authorized the sale of the property in the event of a default. The non-judicial process of foreclosure is used in this case. The lender or a representative has the power to sell the property and must sell the property following the the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines
If there are no specifics in the power of sale clause, then the following guidelines are to be follwed in the non-judicial foreclosure process:

  1. A notice of sale must be published in the newspaper once a week for four weeks in the county where the property is located. In addition to this, a notice must also be put on the property for sale within 15 days after the first ad has been published in the newspaper.
  2. The notice must contain the pertinent information about the sale, a description of the property and other important things that a potential buyer should know.
  3. An auction will be conducted by a sheriff or a trustee from 9am-4pm of the specified date in the notice of sale, and the property will be sold to the highest bidder.
  4. A sale may be postponed by putting up a notice during the original scheduled time of sale. If it is postponed for more than a week, the notice of sale must be published the same way the original notice was done.

Foreclosure Avoidance Counseling

HUD – approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.

If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.

Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.

Detroit Field Office

McNamara Federal Building
477 Michigan Avenue
Detroit, MI 48226

Phone: (313) 226-7900

Fax: (313) 226-5611 or 226-3197

TTY: (313) 226-6899

Lana J. Vacha
Field Office Director

Office Hours: 8:00 a.m. to 5:00 p.m.

Grand Rapids Field Office

99 Monroe Avenue, NW
Suite 402
Grand Rapids, MI 49503

Phone: (616) 456-2100

Fax: (616) 456-2114

TTY: (616) 456-2159

Louis Berra
Field Office Director
Office Hours: 8:00 a.m. to 4:30 p.m.

Flint Field Office

Phoenix Building – 4th Floor

801 S. Saginaw Street

Flint, MI 48502

Phone: (810) 766-5112

Fax: (810) 766-5122

TTY: (810) 766-5106

Louis Berra

Acting Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.

Monday through Friday