What happens in home foreclosures in Michigan?

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Foreclosure on a home in Michigan can take place in a court, however the majority of mortgages in the state are written with a "Power of Sale" provision allowing the lender to sell your home by advertising it if you fall behind on payments.

Notice of Sale Published

The mortgage company is required to publish a Notice of Foreclosure Sale in a newspaper that has circulation in the county the home is located in. The notice must be published at least once a week for 4 weeks.

Notice of Sale Posted

A Notice of Foreclosure Sale must be clearly posted on the property in question by the lender.

Public Auction

The local circuit court administers the sale of the property through an auction, also called a sheriff's sale. If no bids are greater than the amount owed on the home, the lender will take possession of the property.

Transfer of Ownership

A deed is created which transfers the title of the property to the winning bidder or the bank.

Redemption Period

There is a redemption period, usually 6 months, in which the homeowner may still occupy the property and can reclaim ownership if he pays the amount from the public auction, including interest, in full. The owner may sell the home himself to pay off the mortgage during this time as well.

Source:

MI Oakland County: The Foreclosure Process in Michigan

Realty Trac: Michigan Foreclosure Laws

More Information:

City of Novi Michigan: Tips for Avoiding Foreclosure

U.S. Department of Housing and Urban Development: Talk to a Housing Counselor

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What happens in home foreclosures in Michigan?

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