While court ordered foreclosures are permitted in Michigan, they are rare, as most mortgages have clauses that allow a lender to conduct a foreclosure sale once the borrower has defaulted. Your lender is not even required by law in Michigan to send you a notice of his intention to foreclose on your property. The mortgage documentation, however, may obligate him to do so.

Under Michigan foreclosure laws, so many of the procedures governing your lender’s rights to conduct a foreclosure sale are in fact contained in the mortgage documentation. Even your rights to stop the foreclosure sale of your property are specified in the mortgage papers, as are so many of other your rights and obligations.

There are, however, some general rules the lender must follow when foreclosing on your property. A notice of sale must be published each week in a local newspaper for four consecutive weeks. During this period a notice must also be displayed on the property. The notice must list the name of the lender and the borrower, the default amount, a legal description of the property and other pertinent information. The local Sheriff normally conducts the auction at the county courthouse and anybody is free to bid on your property.

The Sheriff, or the person conducting the sale, completes the necessary documentation to transfers ownership at the completion of the auction, upon receiving the full sum specified from the successful bidder.

In Michigan, there is a specified period following the auction, usually six months, during which you can reclaim your property by paying the winning bid amount and any applicable costs. All the details must be outlined in the documentation given to the successful bidder.

Avoid Foreclosure in Michigan

This whole procedure is very stressful for you and your family and often so unnecessary. But you need to act quickly. Many people have helped their families avoid subprime foreclosure on the scheduled day of sale, but the longer you leave it, the more difficult your job is. You need to get somebody in your corner right away.