Mortgage Foreclosure & Michigan Redemption Rights
Homeowners facing foreclosure do not always understand the complicated procedure. In Michigan, when a borrower defaults on the loan, the foreclosure process begins. You may think a foreclosure auction or sale is the final step of foreclosure. However, Michigan law allows homeowners the right to redeem their properties after a foreclosure sale.
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Foreclosure Auction
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Michigan foreclosure law requires the foreclosure process to begin with a notice of sale. The notice of sale must be published in the local newspaper once a week for four weeks. After the first 15 days of publication, a foreclosure notice must be posted on the property. Michigan foreclosure auctions are conducted by the sheriff or trustee. Sale are held at the courthouse between 9:00 a.m. and 4:00 p.m.
Redemption Period
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The length of the redemption period varies, depending on several factors. If the home does not exceed four units or three acres in size and the remaining balance on the loan is more than two-thirds of the original debt, the redemption period is six months. If the property is abandoned, the redemption period is only 30 days. In all other cases, the redemption period is one year from the date of sale.
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Redemption Process
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If a homeowner intends to redeem the home, a petition to redeem must be filed at the courthouse before the redemption period expires. You will need to provide proof of funds to show the court you have sufficient resources to pay the balance. A payment of the entire balance plus all attorney fees and costs must be paid to the county register of deeds. Upon payment, the prior purchaser's deed is void.
Eviction
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If the homeowner is unable to redeem the property, he must vacate the home within 30 days of the redemption period expiration. The lender needs to file a complaint with the district court to commence the eviction action. The homeowner will be served with the papers and a court date is held, usually within 20 days. If a judgment is entered, homeowners have 10 days from the court date to move out of the property.
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