- 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.
