Michigan Foreclosure Law

In Michigan Judicial Foreclosure and non-Judicial foreclosure both approaches are used. In Michigan state foreclosure time line ranges up to 60 days. Michigan foreclosure law gives endorsement to deed of trust and mortgage as primary security instruments. Michigan foreclosure law does not authorize the statutory right of redemption. However deficiency judgments are allowed by Michigan Foreclosure law but it depends on the procedure used..

By way of non-judicial or judicial foreclosure process lenders in the state of Michigan may foreclose on deeds of trusts or mortgages in default occurs.

Judicial Foreclosure
Judicial foreclosure process is by and large used when “no power of sale” is there in the mortgage or deed of trust. A power of sale clause authorizes the sale or transfer of property as outlined by the terms of that clause in a deed of trust or mortgage
While using judicial foreclosure, the foreclosure process is performed in accordance to the term and conditions of that clause.

Non-Judicial Foreclosure
In case of default Michigan foreclosure law authorizes the lender to carry out the process of non-judicial foreclosure if a power of sale clause exists in the deed of trust documents. Deed of trust containing the “Power of sale” allows the lender to sell the property in favor of paying off balance of the loan in the case borrower defaults. Lender and their representatives can sell the property bearing the deeds of trust having power of sale clause.
Rules to be followed in the non-judicial foreclosure are explained below in “power of sale foreclosure guiding principles”

Power of sale foreclosure guiding principles
If the deed of trust comprises of the “power of sale clause” which specifies the time, place and the terms of sale then the specified course of actions must be followed. If power of sale clause does not facilitate the specifications of time, place and terms of sale then non-judicial foreclosure would be followed as bellow:
•    The notice issued to foreclose must be published in newspaper having general circulation in the county in which the property is located every week for three (4) consecutive weeks.
•    It is also required to post the notice on the property not under twenty-one (15) days after the first publication of notice.
•    Said notice must expose the description of the property along with complete address, the lenders and borrowers name, terms of sale, the date, time, and place of the proposed foreclose sale.
•    The sale will be conducted by trustee n sheriff and they will be accountable to strictly follow the sale conditions mentioned in the notice of sale on a business day between the hours of 9:00 a.m. and 4:00 p.m. At auction highest bidder will qualify the sale.
•    Under the unfavorable circumstances sale may be postponed by posting the notice at the place where foreclose was going to be held. If the tenure for the postponement of foreclose prolongs to one week a fresh notice must be published alike previous original publication was given.
•    Deed specifying the last to redeem will be awarded to highest bidder after the foreclose sale, it must be recorded within twenty days following foreclose sale.