Michigan Foreclosure Timeline 2026 (Mortgage vs Tax Foreclosure — Know Which One You’re In)
Facing foreclosure can be a challenging experience for any homeowner. Just because your home is being foreclosed on, though, does not mean you do not have any rights.
Regardless of what type of foreclosure you’re facing — either a mortgage foreclosure or tax foreclosure — there are steps that must be taken and rules that must be followed properly. The first step for you is knowing the foreclosure you’re facing so that you can navigate the steps of getting through it.
While both types of foreclosures could see your home taken from you, there are different timelines that the acting party must take. If you mix up which one you’re in, it could end up costing you your home.
In this guide, we’ll provide you with clear mortgage foreclosure timelines in Michigan for 2026 as well as some basic information about tax foreclosures.
Understanding Michigan Foreclosure in 2026 (and Why This Timeline Matters)
The top online search phrase for distressed homeowners is “Michigan foreclosure timeline.” The reason is because homeowners want to gain information about what’s happening to them and how fast it all can occur.
That’s why we’ve put together this guide for owner-occupants, small landlords, heirs and investors — so you can understand all the steps that lenders must follow in a mortgage foreclosure.
Michigan’s mortgage foreclosure law is called MCL 600.3201-600.3240. It is a non-judicial foreclosure process, meaning that lenders do not go through the court system to complete the foreclosure.
Instead, the lender must record a notice with the county where the home is located, followed by official notice in a local newspaper and a sheriff’s sale. Even after a sheriff’s sale has occurred, homeowners still have a chance to gain back ownership of their home, through what’s called the redemption period.
Michigan Mortgage Foreclosure Basics: Judicial vs. Foreclosure by Advertisement
Technically speaking, there are two paths to mortgage foreclosure in Michigan — judicial and non-judicial foreclosure. However, non-judicial foreclosure — also known as foreclosure by advertisement — is the much more common process in the state.
As mentioned, this involves the lender recording a notice of delinquency following missed payments and eventually holding a sheriff’s sale where the home is sold at auction.
Judicial foreclosure involves the court system and getting official judgments put in place.
Under state law, lenders are only allowed to start the foreclosure by advertisement process once the homeowner is more than 120 days past due on their mortgage payment. At that point, they are allowed to issue official notice to the homeowner and the county, and start the countdown toward a sheriff’s sale if the payments aren’t met.
In addition, there are federal rules that under the Consumer Finance Protection Bureau that require loan servicers to contact borrowers directly after they’ve missed payments — typically at about 36 days past due. Federal rules also state borrowers must be offered other repayment options and loan modifications before foreclosure begins.
The Michigan State Housing Development Authority (MSHDA) also promotes housing counseling so homeowners can understand early on in the process what options they have.
Mortgage Foreclosure Step 1: First Missed Payment Through 120 Days Delinquent
The first step in Michigan foreclosures starts the day after a payment is missed. From Day 1 through Day 36 past the due date, the servicer must make early contact with the borrower, and the lender may issue late fees on top of the payment.
Between Day 37 and Day 120 past the due date, the servicer must attempt live contact with the borrower as well as provide them with written notices about the delinquency. The lender must also provide loss-mitigation options that might be available to the borrower.
Homeowners who work with an MSHDA-approved housing counselor and who take advantage of resources that the Michigan Housing Assistant Fund (MIHAF) provides can get ahead of the process to protect their rights.
Mortgage Foreclosure Step 2: When the Lender Can Legally Start Foreclosure (MCL 600.3204)
According to Michigan state law, a borrower is technically in default of their mortgage the first day they miss a payment. This is what kickstarts the foreclosure process, as described by the timeline above.
To officially proceed with foreclosure by advertisement, though, one of three things must occur. Either the loan must be more than 120 days past due, the borrower must have violated a due-on-sale clause or the foreclosure action of a second mortgage must be joined.
If any of those things has occurred, then the lender may begin foreclosure by advertisement in Michigan.
Mortgage Foreclosure Step 3: Required Notices, Publication and Posting
Once the lender begins the foreclosure by advertisement process, they must publish a Notice of Sale in a local newspaper whose circulation occurs in the same county where the property is located. This notice must be published once per week for four straight weeks before the sheriff’s sale is held.
State law also requires the lender to post a notice of the sheriff’s sale on the property itself at least 15 days after the first notice is published in the newspaper. The notice must include the day the sheriff’s sale is going to be held, the location for the sale as well as the time — which must be between 9 a.m. and 4 p.m.
If the sheriff’s sale goes forward, it is typically held at the local county justice center or courthouse. The sale will be run as a public auction, and the home will be sold to the highest bidder.
Mortgage Foreclosure Step 4: Scheduling and Conducting the Sheriff’s Sale
Sheriff’s sales in Michigan are all public auctions. The highest bidder will win the home, which will always be sold in “as is” condition.
To finalize the auction, the highest bidder must immediately pay the amount of the bid in a cashier’s check. Once that is done, the bidder will receive a sheriff’s deed that will include the details of the sale and all the parties involved.
The sheriff’s deed will also include how transfer of ownership will occur after the required redemption period.
Homeowners who are facing a foreclosure often make the mistake of thinking they can fix the problem another time, or that it’s easy to stop a sheriff’s sale close to when it’s going to be held.
The truth is that homeowners shouldn’t delay in responding to their lender and investigating loss mitigation options well in advance of the sale being held.
Mortgage Foreclosure Step 5: The Redemption Period After Sheriff’s Sale
In Michigan, there is a statutory redemption period following the sheriff’s sale. This gives borrowers the chance to re-take control of their home if they catch up on payments, including fees and interest.
This period is six months for most properties, but it can be as long as 12 months for agricultural properties and for some other situations. The redemption period can be reduced if the property is found to be abandoned.
During this period, homeowners have the right to negotiate to redeem the home, refinance their loan and even sell the home, assuming they can make a profit or pay the difference. They also have the right to remain in the home during the redemption period.
Mortgage Foreclosure Step 6: End of Redemption, Eviction, and Deficiency Risk
Once the redemption period has ended, the homeowner must leave the home if they have not redeemed it. If they refuse to leave, the new owner can go to the local court to have an eviction judgment, which will be carried out by the local sheriff.
It’s possible that lenders can also pursue deficiency judgments in Michigan, though it’s not common. This would involve the lender suing the homeowner for the difference between what the home was sold for at auction and what was owed on the mortgage at the time of the sale.
Michigan Tax Foreclosure Timeline (Not the Same Thing)
A tax foreclosure in Michigan is triggered when a homeowner has missed property tax payments. It’s carried out by the county government and not the mortgage lender.
Tax foreclosure is a longer process. Public Act 123 states that it’s a three-year process that begins with delinquency in year one, property forfeiture in year two and foreclosure in year three.
While the tax foreclosure process plays out over this timeline, homeowners typically have until the final date of foreclosure — at the end of March in year three — to pay back all their owed taxes, interest and fees to reclaim their property.
Action Plan: What Michigan Homeowners Should Do at Each Stage
Before foreclosure begins, it’s important for homeowners to take a look at their budget and negotiate with their lender to avoid foreclosure altogether. They should also document every conversation with the lender as well as steps taken, and seek counseling if need be.
Once publication and posting of the foreclosure has happened, verify that the lender is in compliance with all laws and continue to explore loss mitigation options.
After the sheriff’s sale has been held, use the redemption period to strategically secure a solution so you don’t lose your home.
2026 Legal Updates and Issues to Watch
Laws are not stagnant and can always change. So, it’s important to keep up on these changes and how they might affect you if you’re facing foreclosure.
A case that could come before the U.S. Supreme Court, for example, could significantly affect the tax foreclosure laws in MIchigan, specifically whether homeowners could reclaim surplus sale funds.
There are many state-level cases that could affect the local foreclosure market as well.
How Babi Legal Group Helps Homeowners Navigate Michigan Foreclosure Timelines
If you’re facing foreclosure in Michigan, it’s important that you consult with an experienced foreclosure attorney such as the experts at Babi Legal Group.
Our attorneys can analyze notices, sheriff’s deeds, servicing records and timelines to ensure the lender is following all the rules. We can devise legal strategies to pause, fix or challenge mortgage foreclosure.
We can also provide other options, such as bankruptcy, to help you get your finances right and protect your home.
To learn more, please contact us today.
