A missed mortgage payment in Michigan starts a process that takes months, not days. Here’s how it runs, based on the stages published by MSHDA, the state housing authority, and what you can do along the way.
How Michigan foreclosure works
- Missed payment (days 2 to 36). Late charges start, and your servicer must try to reach you to explain options.
- Written notice (around day 45). The servicer assigns you a single point of contact and sends written notice of your options.
- Workout period (days 45 to 121). You can apply for a modification or other workout.
- Foreclosure starts (around day 121). If the default isn’t resolved and no hardship application is pending, a sheriff sale is scheduled and published in a county newspaper for four consecutive weeks. A notice is posted on the house.
- Sheriff sale. The house is auctioned. The sheriff’s deed states the last day you can redeem.
- Redemption period. Most often six months; it can be 12 months in some cases, such as when less than two-thirds of the original loan is owed. You can live in the house during this time, and you can still sell it or redeem it.
During the redemption period
Keep up the property, utilities and insurance, and allow the buyer from the sheriff sale to inspect. If you unreasonably refuse an inspection, or the house is damaged, the buyer can move to evict early and end your redemption period.
Your options
- Catch up or modify. If you can afford the payments going forward, ask your servicer about reinstatement, a repayment plan or a modification. Don’t agree to a plan you can’t keep.
- Talk to a HUD-approved housing counselor. They can walk you through your servicer’s options, often at no cost.
- Sell before the sheriff sale, or during redemption. If the house is worth more than you owe, selling pays off the mortgage at closing and you keep the difference instead of losing it at auction.
- Short sale. If you owe more than the house is worth, a sale below the payoff needs your lender’s approval.
Why time matters when selling
A sale needs time for title work and a payoff letter from your servicer. Starting before the sheriff sale gives you the most room. If you’re already in redemption, check the last redemption date on the sheriff’s deed and work back from it.
Getting an offer
Let us know roughly what’s owed and where you are in the process, including the sheriff sale date if there is one. If a sale can work, we’ll put an offer in writing with a closing date that fits your deadline. Tell us about the property.
This guide is general information, not legal or tax advice. Laws and city rules change, so check the sources below and talk to an attorney about your situation.