According to Michigan foreclosure laws, the state uses two forms of foreclosures, namely the judicial and the non-judicial procedures. Non judicial foreclosure is also referred to as foreclosure by advertisement. The duration of such foreclosure is around sixty-days.

Michigan State's Judicial Foreclosure

In Michigan the lender can foreclose the mortgage by filing the law suit in the Michigan circuit court. The court orders to sell the property six months after the primary filing of the proceedings. The circuit court commissioner is solely responsible for the sale of the foreclosure homes.

Michigan State's Non - Judicial Foreclosure

The foreclosed property can be sold under the commercial basis otherwise known as non-judicial foreclosure or through advertising. This situation occurs when the mortgage is not held by the Michigan state housing development authority. If the installments are not paid the mortgage act validates the foreclosure.

The notice of the sale of the foreclosure properties should be published in the local newspaper for four weeks, in the prescribed manner which is generally once a week for a few weeks and then fifteen before the sale. Apart from this the notice should be posted in the area where the sale of the foreclosure properties is going to be held.

The sale of the foreclosed homes is held in the courthouse where the claim is filed. The foreclosure auction is conducted by a sheriff or a deputy sheriff. The highest bidder acquires the foreclosed property. The sale can also be postponed from time to time by notification in the newspaper. The only condition is the auction should be adjourned that within 10 days from the date of the sale.

The proceedings for the sale of this foreclosure property are carried out by the officer or person conducting the sale. The title of the property goes to the highest bidder at the foreclosure sale. The last date for the sale should be specified so as the borrower can redeem the foreclosure home if possible. The legal documents should be officially recorded within 20 days after the sale.

Recovery of the foreclosed properties according to Michigan foreclosure laws

• The borrower can get back his three to four units of the abandoned foreclosed property, for a period of one year from the date of the foreclosure sale.
• And if the property is deserted, in case the balance is over two-thirds of the original mortgage then the recovery period is reduced to one month.
• If the balance is two-thirds or less of the original loan, you can make use of one year.
• If the foreclosed property is four units or less and is less than three acres in size, then two different redemptions time period is concerned.
• The rules vary for mortgages that began after 1965. If the amount that remains unpaid on the loan is more than two-thirds of the original debit, then the borrower is given six months to redeem.
• If the unpaid balance on a mortgage is less than two-thirds of the original debt, the borrower is given only three months to redeem the property if it has been abandoned.
• If the borrower fails to respond to the notices, then the sale of the foreclosure properties can be rejected after the personal assessment resulting in negative responses.