Michigan Foreclosure Laws

The time frame for a lender to complete a foreclosure proceeding is around sixty days in the state of Michigan. This holds true for both the judicial foreclosure and the non-judicial foreclosures. The state does allow the borrower who has fallen into foreclosure to exercise the right of redemption and the lender has variable rights as far as filing for a deficiency judgement here.

The lender must obtain a decree for the amount of default by suing the borrower in a judicial foreclosure. If the lender is successful in obtaining this document then the court will give the borrower a brief time frame in which to satisfy the default. If the borrower is unable to do so then the court will issue a notice of sale.

When looking at a non-judicial foreclosure a notice of sale must be published weekly for four consecutive weeks in a newspaper, which is of considered to be in general circulation in the county in which the property is located. The notice must also be posted on the property within fifteen days after the first publication date.

The sale will then occur as a public auction by either the sheriff or the lender’s trustee between 9:00 AM and 4:00 PM. And the successful bidder receives a deed to the property that becomes operative at the expiration of the applicable redemption period.

With regards to the right of redemption: If the remaining balance of the loan is more than two-thirds of the original amount-6 months; if abandoned-30 days, and in all other cases, one year.

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