Facing foreclosure is stressful. You’re probably wondering what comes next and which rules actually apply to your situation. Michigan law gives lenders two different paths to foreclose on your property, and knowing which one you’re dealing with can completely change how you should respond.
Judicial Foreclosure in Michigan
Judicial foreclosure means your lender has to take you to court. They can’t just move forward on their own. They need a judge’s permission. The lender files a lawsuit in circuit court and has to prove you’ve defaulted on your mortgage. More importantly, they have to prove they actually have the legal right to foreclose. You’ll get served with a summons and complaint, which gives you a chance to fight back. This process takes longer than you might expect. We’re talking six months minimum, often stretching past a year, and here’s what matters: you can actually contest the foreclosure in court. Maybe the amount they claim you owe isn’t right. Maybe they didn’t follow the proper procedures. Maybe you weren’t actually in default. These are all potential defenses. A Southfield foreclosure lawyer can review your case and figure out if you’ve got grounds to challenge what’s happening. If the court sides with the lender, they’ll issue a judgment of foreclosure and order your property sold at a sheriff’s sale. But you’re not necessarily done yet. Michigan gives you a six-month redemption period after the sale. During that time, you can reclaim your home by paying the full sale price plus interest and costs.
Nonjudicial Foreclosure by Advertisement
This is the more common route in Michigan. It’s called foreclosure by advertisement, and it doesn’t involve the court system unless you take legal action to stop it. Most mortgages in Michigan include something called a power of sale clause. That clause lets lenders foreclose without ever seeing a judge. The process moves fast. Much faster. You’re looking at a few months instead of over a year, but lenders can’t just do whatever they want. They’ve got specific requirements to follow:
- They must publish a notice of sale in a local newspaper once a week for four straight weeks
- They have to post a notice at your property and at the county courthouse
- They need to send you a written notice about your right to request a meeting to discuss foreclosure prevention options
- They must wait at least 28 days after that first publication before holding the sale
The property sells at a public auction. Usually at the courthouse steps. After the sale, you typically get a six-month redemption period for residential properties. You can stay in the home during this time while you work on reclaiming it. According to data from the Michigan State Housing Development Authority, nonjudicial foreclosure by advertisement is how most residential foreclosures happen in our state. Why? It’s faster and cheaper for lenders.
Key Differences That Impact Homeowners
The method your lender uses isn’t just a technicality. It fundamentally changes your rights and what you can do about the situation. Judicial foreclosure puts you in court automatically. You’re a defendant. You’ve got built-in opportunities to challenge what’s happening. Nonjudicial foreclosure is different. If you want to contest it, you have to take action. You’re the one who has to file a lawsuit to stop the sale. Timeline matters too. Nonjudicial foreclosure accelerates quickly once those newspaper notices start running. You don’t have much breathing room. Judicial foreclosure gives you more time to explore your options or build a defense. Legal representation plays out differently in each scenario. When you’re sued in a judicial foreclosure, you need someone defending you in that lawsuit. With nonjudicial foreclosure, you might need a lawyer to file an injunction or negotiate with the lender before the sale date arrives. Both methods typically offer a redemption period, but the exact calculation can shift based on factors like property type, how much you owe, and even the property’s acreage. Gudeman & Associates, P.C. works with Michigan homeowners who are dealing with foreclosure.
Understanding Your Options
You’re not without options here, regardless of which foreclosure method you’re facing. Loan modifications might bring your payments down to something manageable. Repayment plans can help you catch up. Short sales let you avoid foreclosure on your credit report. A deed in lieu of foreclosure might make sense in certain situations. Whether you’ve been served with a lawsuit or you’ve received a notice of foreclosure by advertisement in the mail, talking with a Southfield foreclosure lawyer can help you figure out what’s really happening and what you can do about it. Time matters in these situations. The earlier you act, the more options you’ll have for keeping your home or at least minimizing the financial fallout.
