Facing Foreclosure in Michigan? Here’s What You Need to Know — and Why a Realtor Can Be Your Lifeline

When John and Lisa bought their home in Northern Michigan, they never imagined they’d face foreclosure. But after a job loss and unexpected medical bills, they started falling behind on their mortgage. At first, they ignored the letters — it was too overwhelming. By the time they opened them, the sheriff’s sale was already scheduled. They didn’t realize they still had options… until it was almost too late.

If you’re in a similar situation, here’s the good news: you’re not out of options yet — but the sooner you act, the more choices you’ll have.

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Step One: Talk to Your Bank

Before you do anything else, call your lender.

I know that can feel intimidating, but most banks truly don’t want to foreclose. They’d rather work out a solution, such as:

• Loan modification
• Temporary forbearance
• Repayment plan

Sometimes one honest conversation can stop the foreclosure process before it ever gets off the ground. Waiting only limits your options — so reach out early.

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How Foreclosure Works in Michigan

In Michigan, most foreclosures happen “by advertisement,” meaning the lender doesn’t have to go through the court system. After certain legal notices, your home is sold at a sheriff’s sale (public auction).

Here’s where a lot of people are surprised: even after the auction, you might still be able to get your home back.

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The Redemption Period — Your Second Chance

After the sheriff’s sale, Michigan law gives you a redemption period — time to pay off the balance (plus interest and fees) and reclaim your property.

• 6 Months — Most standard residential properties
• 12 Months — You may get a full year if:
  • Your property is over three acres
  • Your property has more than four rental units
  • You owe less than one-third of your original mortgage balance

That extra six months can be a game changer — it gives you time to sell, refinance, or raise the money to save your home.

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When the Clock Can Speed Up

In certain situations, the redemption period can be cut to as little as 30 days. This usually happens if the bank proves the property is abandoned, utilities are off, or the home is being neglected or damaged.

If foreclosure is happening, stay in the home and keep it maintained — it helps preserve your rights.

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Why a Realtor Can Help — Even in Foreclosure

If working things out with the bank isn’t possible, calling a Realtor immediately can protect your financial future.

A skilled Michigan agent can:

• Help you sell during the redemption period so you can preserve as much equity as possible
• Market your property fast to the right buyers so you’re not racing the clock
• Keep you informed so there are no surprises along the way

Too many people wait until the last minute to get help — and by then, their best options are gone. A knowledgeable Realtor can help you take control instead of letting time run out.

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Bottom line: If foreclosure is on the horizon, start with your bank. If that doesn’t work, don’t wait — get a Realtor on your side who understands Michigan’s foreclosure and redemption rules. You still have options… but every day you wait, you have fewer.