Facing Foreclosure in Michigan?

You have more time and more options than you think. Michigan uses non-judicial foreclosure with a typical timeline of 270 days. You also get a 6 months redemption period after the sale. This guide explains what's happening and what to do.

See Your Options Call Free: 1-800-569-4287

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56 HUD Counselors in Michigan

Private — No Data Collected

20+ Years Experience

Foreclosure Type

Non-Judicial

No court involvement required

Typical Timeline

270 Days

From first notice to sale

Redemption Period

6 months

You can buy back after sale

Deficiency Judgment

Limited

FMV credit required

Right to Cure

Until Sale

Pay arrears to stop process

Mandatory Mediation

Not Required

Federal protections apply

Where are you right now?

I'm behind on payments You've missed one or more mortgage payments but haven't received a foreclosure notice I got a foreclosure notice You received a Notice of Default or a letter about foreclosure proceedings My sale date is soon Your home is scheduled to be sold at auction

Michigan ranks 15th in the nation for financial distress, with a State Distress Index score of 55.8 (Elevated). The state's bankruptcy filing rate is 222 per 100,000 residents. Credit card delinquency stands at 11.28%. If you're struggling, you're not alone.

Source: Michigan Financial Distress Profile — American Default Research, updated 2026-04-16

Most Distressed Counties

County	Score	Zone
Wayne County	76.2	Serious
Genesee County	68.0	Serious
Calhoun County	65.1	Serious
Saginaw County	63.1	Elevated
Clare County	60.0	Elevated

3 counties in Serious or Crisis zones, 25 in Elevated.

See all 83 Michigan counties →

Michigan Foreclosure Timeline

Michigan's judicial process gives you more time than most states. Federal law protects you for the first 120 days, and Michigan's 6 months redemption period extends the full process further.

Day 1–36

Missed payment. Your servicer must attempt to contact you by Day 36 to discuss options. Federal law (Regulation X).

Day 37–45

Written notice required. Your servicer must send written notice of loss mitigation options by Day 45. You can still apply for help.

Day 45–120

Protected period. Federal law prohibits your lender from starting foreclosure until Day 120. This is your window to apply for a loan modification or forbearance.

Day 120+

Foreclosure can begin. If you've received a Notice of Default, you're here. In Michigan, the lender must give you 14 days' written notice and follow state-specific publication requirements. You still have options — see what you can do.

Day 134–330

Foreclosure sale. The property is sold at public auction, typically at the county courthouse. The lender often buys it back.

After sale

6 months redemption. Michigan law gives you time after the sale to buy back the property. The specific terms depend on your situation — contact a HUD counselor or attorney for details on your redemption rights.

For a personalized timeline based on your last payment date, use our Foreclosure Timeline Calculator.

Your Rights Under Michigan Law

Right to Cure Borrower may reinstate the mortgage at any time before the sheriff's sale by paying all arrears, fees, and costs (not the full accelerated balance). After sale, redemption (full payoff) is the only option. MCL 600.3204; 12 CFR 1024.41

Right to Reinstate Before the sheriff's sale date; must pay all arrears and costs 12 CFR 1024.41; MCL 600.3204

Federal

Dual Tracking Prohibition Federal law (CFPB Regulation X) prohibits servicers from advancing foreclosure while reviewing a loss mitigation application. 12 CFR 1024.41

Federal

Loss Mitigation Review Federal CFPB Regulation X requires servicers to complete loss mitigation review before foreclosure referral. Michigan previously had a mandatory mediation/counseling conference requirement (MCL 600.3205a) but this was repealed in 2013. 12 CFR 1024.41

Pre-Foreclosure Contact Both state law (14-day notice with counselor referral) and federal CFPB rules require servicer outreach before foreclosure publication. MCL 600.3205; 12 CFR 1024.41

Michigan-Specific Protections

Predatory Lending Michigan Mortgage Brokers, Lenders, and Servicers Licensing Act (MCL 445.1651 et seq.) and the Secondary Mortgage Loan Act regulate mortgage lending. Michigan Consumer Protection Act (MCL 445.901 et seq.) prohibits unfair and deceptive practices. MCL 445.1651 et seq.; MCL 445.901 et seq.

Foreclosure Rescue Fraud Michigan Mortgage Loan Originator Licensing Act and Michigan Consumer Protection Act (MCL 445.901) prohibit foreclosure rescue fraud. Advance fee arrangements in foreclosure prevention are restricted. MCL 445.901 et seq.

Dispute Resolution Options in Michigan

Bankruptcy Court Mediation Programs

While Michigan does not have a statewide foreclosure mediation program, several bankruptcy courts offer loss mitigation programs that can help if you file for bankruptcy protection.

Eastern District of Michigan (Detroit/Flint/Ann Arbor) and Western District of Michigan (Grand Rapids/Lansing/Kalamazoo) Loss Mitigation Program Court website

Your Options in Michigan

Every situation is different, but most Michigan homeowners have more options than they realize. Here are the paths available to you, from keeping your home to making a clean exit.

Can I keep my home?

Yes, if you act early enough. A loan modification permanently changes your mortgage terms to make payments affordable. Your servicer is required to evaluate you for one if you submit a complete application more than 37 days before a scheduled sale.

Forbearance gives you a temporary payment pause. It doesn't erase what you owe, but it buys time if your hardship is short-term. In Michigan, forbearance available through servicer and federal GSE programs (Fannie/Freddie/FHA/VA/USDA). MSHDA MIHAF funds may cover arrears accrued during forbearance. Reinstatement means paying everything you owe (missed payments plus fees) to bring the loan current.

Filing for Chapter 13 bankruptcy triggers an automatic stay that halts foreclosure immediately. You can catch up on missed payments over 3-5 years while keeping your home. The bankruptcy filing rate in Michigan is 222 per 100,000 residents.

What if I can't keep my home?

Selling before foreclosure gives you control over the process and protects your credit score. A short sale lets you sell for less than you owe with lender approval. A deed in lieu of foreclosure transfers the property directly to the lender.

If you sell through a short sale in Michigan, you can negotiate a deficiency waiver as part of the approval. Short sales available with servicer approval.

A deed in lieu of foreclosure in Michigan transfers the property directly to the lender. Deed in lieu of foreclosure available with servicer approval and clear title.

Michigan limits deficiency judgments — your lender's ability to pursue you for the balance is restricted by state law.

A distressed property specialist can help

An agent who works with distressed sellers in Michigan can negotiate with your lender, manage the short sale process, and help you walk away with your credit intact. The earlier you start, the more leverage you have.

Talk to one for free

My sale date is within 30 days

You still have options, but you need to move fast.

File for bankruptcy. A Chapter 13 filing triggers an automatic stay that stops the sale immediately. Talk to a bankruptcy attorney today.

Submit a loss mitigation application. If you haven't already, a complete application received more than 37 days before the sale forces your servicer to review it before proceeding.

Call a HUD counselor now. They can contact your servicer on your behalf and may be able to delay the sale. Call 1-800-569-4287.

Financial Assistance in Michigan

Michigan Homeowner Assistance Fund (MIHAF)

Funds Available

Administered by Michigan State Housing Development Authority (MSHDA)

Apply Visit program website

Other Michigan Programs

MSHDA Homeownership Programs

MSHDA offers below-market mortgage products, down payment assistance, and homeowner assistance programs for Michigan residents.

Visit website

Detroit 0% Home Repair Loans

City of Detroit program offering 0% interest loans for home repairs to income-eligible Detroit homeowners.

Visit website

After the Sale in Michigan

Eviction Notice

7 Days

Court order required for removal

Surplus Funds

You can claim

Former owner should claim surplus from the county sheriff before funds are distributed or turned over to the state

Cash for Keys

Commonly offered

Voluntary relocation assistance (cash for keys) sometimes negotiated with new owner or servicer after sale.

After the redemption period expires and the Sheriff's Deed is recorded, the new owner may seek possession through summary proceedings in District Court (MCL 600.5701 et seq.). New owner must give demand for possession before filing. The federal Protecting Tenants at Foreclosure Act (PTFA) requires at least 90 days' notice for bona fide tenants in any state.

Protect yourself from scams

People in financial distress are prime targets for fraud. Know these rules:

⚠

Never pay an upfront fee for help. Advance fees for mortgage or debt assistance are illegal in most states. If anyone asks for money before doing anything, walk away.

⚠

HUD-approved counseling is always free. Call 1-800-569-4287 or visit the CFPB counselor finder. If someone charges for what HUD counselors do for free, it's a scam.

⚠

Never sign over your deed without an attorney. "Equity stripping" and "sale-leaseback" scams trick homeowners into transferring their title. You could lose your home permanently.

⚠

Your servicer must evaluate you for loss mitigation. Under federal rules (Regulation X), servicers cannot start foreclosure until you're 120+ days delinquent, and must review your application before proceeding. If a company claims only they can "save" your home, verify through your actual servicer.

Report fraud: CFPB · FTC · your state attorney general's office.

How It Works

Tell us your situation

Answer a few questions about where you are in the process. Takes 60 seconds.

We review your options

A local professional reviews your situation based on Michigan law and your servicer's track record.

You get a plan

You receive a personalized action plan with next steps. No upfront fees. No obligation.

Foreclosure Timeline Calculator

See exactly when each step of Michigan's foreclosure process happens based on your last payment date.

Hardship Letter Generator

Write a loss mitigation request to your mortgage servicer. Pre-formatted with your situation details.

Get a Free, Confidential Review of Your Options in Michigan

A HUD counselor, attorney, or distressed property specialist in Michigan can review your specific situation. Many at no cost.

We connect you with HUD-approved counselors, legal aid, and distressed property specialists. We do not sell your information.

Free Resources in Michigan

HUD-Approved Counselors

56 certified agencies in Michigan provide free foreclosure prevention counseling. They can negotiate with your servicer on your behalf.

Find a counselor near you

Legal Aid

Legal Aid & Defender Association of Detroit provides free legal help to low-income residents facing foreclosure, eviction, and debt collection.

Find legal aid

State Bar of Michigan Lawyer Referral Service

The State Bar of Michigan Lawyer Referral Service can connect you with a foreclosure defense attorney. Initial consultations are often free or low-cost.

Find an attorney

Michigan Foreclosure Law

Detailed guide to Michigan's foreclosure statutes, homeowner protections, and redemption rights. Every claim cited to its source statute.

Read Michigan foreclosure law

File a Complaint

If your mortgage servicer violates your rights, file a complaint with the Michigan Department of Insurance and Financial Services (DIFS) or the Michigan Attorney General. You can also file with the Consumer Financial Protection Bureau.

State financial regulator Attorney General CFPB complaint portal

Michigan State Housing Development Authority (MSHDA)

Your state housing finance agency administers homeowner assistance programs, foreclosure prevention services, and affordable housing resources.

Visit Michigan State Housing Development Authority (MSHDA)

Frequently Asked Questions

How long does foreclosure take in Michigan?

Michigan uses non-judicial foreclosure. The process typically takes 270 days from the first notice to the sale date. Michigan also grants a 6 months redemption period after the sale, extending the full timeline. Federal law (Regulation X) prohibits lenders from starting foreclosure until Day 120 of delinquency.

Can I stop foreclosure once it starts in Michigan?

Yes. You have several options: (1) Reinstatement — pay all missed payments plus fees to bring your loan current. (2) Loan modification — your servicer must review a complete application received more than 37 days before a scheduled sale. (3) Forbearance — temporary payment pause. (4) Bankruptcy — triggers an automatic stay that halts the sale immediately. (5) Short sale — sell the property before the lender does.

Does Michigan allow deficiency judgments?

Michigan limits deficiency judgments. Your lender's ability to pursue you for the remaining balance is restricted by state law. Requirements may include fair market value credits or time limitations. See our Michigan foreclosure law guide for specific details.

Is foreclosure counseling free in Michigan?

Yes. There are 56 HUD-approved counseling agencies in Michigan. Call 1-800-569-4287 for a free referral. HUD counselors can negotiate with your servicer on your behalf at no cost to you. Find one near you.

What is the homestead exemption in Michigan?

Michigan's homestead exemption is $40,475. Important: this exemption does not protect your home from mortgage foreclosure. It only protects equity from unsecured creditors like credit card companies. It will not stop or slow a foreclosure.

What if I have an FHA, VA, or USDA loan in Michigan?

Government-backed loans have additional protections beyond Michigan state law. FHA loans require a face-to-face meeting attempt before foreclosure. VA loans require the servicer to explore all alternatives. USDA loans have their own loss mitigation process. These protections generally extend the timeline beyond the state minimums.

What happens to tenants if my Michigan home is foreclosed?

Federal law (the Protecting Tenants at Foreclosure Act) gives tenants with valid leases at least 90 days' notice before they must vacate after a foreclosure sale. Federal PTFA provides 90-day notice to bona fide tenants after foreclosure sale. If you rent out the property, notify your tenants as soon as possible and advise them to document their lease.

Can I claim surplus funds after a foreclosure sale in Michigan?

Yes. If your Michigan home sells at auction for more than the total owed (including fees and costs), you have the right to claim the difference. Former owner should claim surplus from the county sheriff before funds are distributed or turned over to the state. Contact the county clerk, court, or trustee who conducted the sale. These funds can be significant — don't assume nothing is left.

Is the Homeowner Assistance Fund still available in Michigan?

Yes. The Michigan Homeowner Assistance Fund (MIHAF) still has funds available. Apply here. HAF can cover past-due mortgage payments, property taxes, insurance, and utilities.

Can I do a short sale to avoid foreclosure in Michigan?

Yes. In Michigan, you can negotiate a deficiency waiver as part of a short sale approval. Short sales available with servicer approval. Get the waiver in writing before closing. A HUD-approved counselor can help negotiate the terms.

Last updated: 2026-04-16. Data sources: Federal Reserve Bank of New York, CFPB, U.S. Courts, Census Bureau, BLS, Michigan Code.

Michigan Foreclosure Facts