What Happens in Home Foreclosures in Michigan?
Michigan's status as a "foreclosure by advertisement" state determines how the process unfolds. If the homeowner's mortgage includes a "power of sale'' clause, the bank can go straight to foreclosure without a court hearing.
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Considerations
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If the mortgage has no power of sale clause, the bank must seek a judicial foreclosure, which requires a court hearing. The bank need not send a default notice, though the mortgage terms may still mandate it.
Time Frame
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Once a borrower defaults, the bank's attorney publishes a foreclosure notice for four consecutive weeks in the homeowner's local newspaper. A notice must be conspicuously posted on the property within 15 days after the first publication week.
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Significance
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Once the 28-day period expires, a sheriff's sale is held at the county courthouse. A successful sale wipes out the old mortgage. Otherwise, the bank retakes the property, and the minimum bid--or amount owed on the mortgage--remains.
Redemption Period
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New owners cannot move into the home until the redemption period expires. The standard redemption period runs for six months, unless the property is three or more acres. In that case, a 12-month period will apply.
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