Redemption and eviction after a Michigan foreclosure sale: what you can still do, and how long you have
I am Mitchell Bisson, a Grand Rapids real estate lawyer. I have litigated for over 15 years. This page is for a homeowner whose house has already been sold at a Michigan foreclosure sale. It explains the redemption period, what it costs to redeem, what the buyer may do while you are still in the house, how the eviction case works once the period ends, and what is left to challenge. I represent homeowners, and I do not promise outcomes.
The short answer. After a sale by advertisement, the buyer’s deed is void if you redeem the whole property by paying the required amount within the redemption period. MCL 600.3240(1). If you do not, the deed takes effect and you lose your title and interest. MCL 600.3236. You can then be evicted by a court case, not by a lockout. MCL 600.5714(1)(g); MCL 600.5711. The period can be six months, one year, or as short as one month or 30 days, so the first job is to work out the actual date.
A sheriff’s sale is not the end of the home. Michigan gives the former owner a statutory redemption period after the sale, and during it you can stay, negotiate, redeem or prepare a challenge. People lose homes unnecessarily when they do not know the date or the amount.
I start with the sheriff’s deed and the certificate of sale, the recorded affidavit that states the redemption amount, and the notices the buyer sent. Then I tell you the date your redemption period ends, what you would have to pay, and what each option costs. If you need a lender, a family member or a buyer to supply the redemption money, the date drives everything else.
Redemption and eviction issues at a glance
The table lists the questions I am asked most often after a sale, what has to be shown, and the rule that governs.
| Issue | What must be shown | Time limit or key rule | Authority |
|---|---|---|---|
| Redeeming the property | Payment of the amount required, to the purchaser or the purchaser’s assigns, or to the register of deeds for the purchaser’s benefit | Must be made within the applicable redemption period. A timely redemption of the entire premises voids the purchaser’s deed | MCL 600.3240(1), (2) |
| Length of the period: most homes | Residential property of not more than 4 units, where the amount claimed due at the date of the notice of foreclosure is more than 66-2/3% of the original debt | 6 months from the sale. Otherwise a home that does not fit another category has 1 year | MCL 600.3240(8), (12) |
| Length of the period: abandoned home | The conclusive presumption of abandonment under section 3241 or 3241a is satisfied | 1 month under section 3241, or 30 days (or until the time to give the section 3241a(c) notice expires, if later) under section 3241a | MCL 600.3240(9), (10); MCL 600.3241; MCL 600.3241a |
| Purchaser’s interior inspection | Notice of the purchaser’s identity, the sale, the redemption date and the inspection rights, then notice of the inspection | At least 72 hours in advance, at a reasonable time of day. A follow-up request for information on the interior is limited to once a month and 3 times in any 6 months unless damage is imminent or has occurred | MCL 600.3237; MCL 600.3238(2)-(5) |
| Damage to the property | Physical injury beyond ordinary wear and tear caused by or at the direction of the mortgagor | Liability during the redemption period. Presumptions arise from refusing inspection, failing to give 10 days’ notice before vacating, or failing to surrender control | MCL 600.3278(1), (2) |
| Eviction after the period | Continued possession of premises sold under a mortgage after the time limited for redemption | Summary proceedings in the district court. Writ not issued until 10 days after judgment in the ordinary case | MCL 600.5714(1)(g); MCL 600.5704; MCL 600.5744(5) |
| Surplus sale money | Money left after the mortgage and the costs of the foreclosure and sale are paid | Paid on demand to the mortgagor unless a later mortgage or lien holder files a verified written claim | MCL 600.3252 |
| Challenging the sale | A defect or irregularity in the foreclosure and prejudice to you | A defect makes the sale voidable, not void. After the redemption period ends, a mortgagor who did not redeem generally has lost standing to challenge, and a homeowner who does challenge must show prejudice | Kim v. JPMorgan Chase Bank, NA, 493 Mich. 98, 103, 115-116 (2012); Bryan v. JPMorgan Chase Bank, 304 Mich. App. 708, 713-715 (2014) |
Redeeming: who can do it, what it costs and how to pay
The statute names who may redeem: the mortgagor, the mortgagor’s heirs or personal representative, and any person with a recorded interest in the property who lawfully claims under the mortgagor or the mortgagor’s heirs or personal representative. MCL 600.3240(1). If a separately sold lot or parcel is redeemed, the deed is void only as to that parcel. MCL 600.3240(3).
The base amount is what the purchaser bid for the entire premises, plus interest from the sale date at the rate in the mortgage, plus the sheriff’s fee the purchaser paid, plus $5.00 if you pay the register of deeds. MCL 600.3240(2). The purchaser must record an affidavit with the deed that states the exact amount needed to redeem, including any daily per diem, and the redemption date must appear on the certificate of sale. The purchaser may name a designee to help compute the figure and receive the money, and the designee may charge a fee of not more than $250.00 as stated in the affidavit. The purchaser must accept the amount the designee computes. MCL 600.3240(2). The amount stated in the recorded affidavits is the amount necessary to satisfy the redemption requirements. MCL 600.3240(13).
Extra amounts can be added. If the purchaser pays property taxes, amounts to redeem senior liens, condominium, homeowner or community association assessments, or insurance premiums on the buildings that the mortgage required you to pay, you must reimburse those with interest, but only if the purchaser has filed the affidavit and proof of payment with the register of deeds that the statute requires. MCL 600.3240(4). That filing requirement is where I look first when a payoff figure looks too high.
Pay in a way that leaves a record, and do not rely on a verbal promise that the buyer will accept late money or a partial payment.
How long the redemption period lasts
For most homes the answer is six months or one year. The period is six months for commercial, industrial and larger multifamily property, and for a one-to-four unit residence if the amount claimed due at the date of the notice of foreclosure is more than 66-2/3% of the original debt. Property used for agricultural purposes has one year. If none of those categories applies, the period is one year. MCL 600.3240(7), (8), (11), (12).
Abandonment can shorten it. If a one-to-four unit residence is abandoned as determined under section 3241, the period is one month. Under section 3241a the period is 30 days or until the time to give the notice required by section 3241a(c) expires, whichever is later. MCL 600.3240(9), (10). Section 3241 requires, among other things, a recorded affidavit that the mortgagee inspected and found no sign you were occupying or intended to occupy the property, and it fails if you record a written affidavit before the redemption period expires stating that you are occupying or intend to occupy. MCL 600.3241. Section 3241a requires an inspection, a posted and mailed notice that the premises are considered abandoned, and no written reply within 15 days saying they are not. MCL 600.3241a. If you live in the house and receive an abandonment notice, answer it in writing within 15 days and keep proof.
The sale itself can be adjourned. The person conducting it may adjourn it at the request of the party in whose name the notice of sale was published, by posting a notice at the place of sale, and if the adjournment is for more than one week the notice must also be published. No oral announcement is required. MCL 600.3220.
What the buyer can do while you are still in the house
After a sale, a purchaser who intends to inspect the interior must first give you, and anyone else in possession, a written notice. It must identify the purchaser, give contact information, state the sale date and amount and the estimated date the redemption period ends, describe the inspection rights, offer ways to surrender control of the property, and warn that if you intend to leave you must say so or risk heightened liability for damage. MCL 600.3237.
The purchaser may do an initial interior inspection on at least 72 hours’ notice at a reasonable time, coordinated with you if possible, and may do any number of exterior inspections during the redemption period. After that, the purchaser may ask you for information on the interior condition, but not more than once a month or more than 3 times in any 6 months unless there is reason to believe damage is imminent or has occurred. If you do not respond within 5 business days, or the information shows damage, the purchaser may schedule another interior inspection on 72 hours’ notice. MCL 600.3238(2)-(5).
If an inspection is unreasonably refused, or damage is imminent or has occurred, the purchaser may begin summary proceedings for possession right away, after giving notice and 7 days to repair or correct the condition. The case is barred if you repair within the 7 days or the two sides agree on a repair plan and complete it. The judge must weigh the totality of the circumstances. MCL 600.3238(6)-(9). A judgment for possession entered that way ends your right of redemption. MCL 600.3238(10). I advise clients to answer reasonable requests in writing and keep photographs.
You are liable to the purchaser for physical injury beyond normal wear and tear that you cause or direct during the redemption period. A rebuttable presumption of liability for damage arises if you refuse inspections or information requests, fail to give 10 days’ notice before vacating after the purchaser sent the section 3237 notice, or fail to surrender control in a way that lets the purchaser secure the property. If you do all three things right, there is a rebuttable presumption you are not liable for damage after you surrender control. MCL 600.3278(1)-(3). Do not strip fixtures, remove appliances or leave utilities off in a house you are leaving.
When the redemption period ends
Unless the property is redeemed in time, the sheriff’s deed becomes operative and vests in the buyer all the right, title and interest you had at the time of the mortgage or at any time after it. A valid lien that existed before the mortgage took effect is not prejudiced by the sale. MCL 600.3236. The Court of Appeals applies that rule strictly. A mortgagor who did not redeem lost all rights in the property and lost standing to sue over the foreclosure, even though the suit was filed on a claim that the foreclosing bank had not recorded its interest. Bryan v. JPMorgan Chase Bank, 304 Mich. App. 708, 713-715 (2014).
That does not mean a defect never matters. The Michigan Supreme Court held that a defect or irregularity in a foreclosure by advertisement makes the sale voidable rather than void from the start. Kim v. JPMorgan Chase Bank, NA, 493 Mich. 98, 103, 115-116 (2012). A homeowner who challenges a sale also has to show prejudice, meaning that he or she would have been in a better position to preserve the interest in the property without the defect. In practice, the time to raise a defect is before the redemption period ends, in a court case that asks for relief while you still hold your rights. I look for defects in the notice, in the chain of the mortgage and in the way the sale was held in the first days after a client calls me.
The eviction case
A person entitled to possession may recover it by summary proceedings when a person continues in possession of premises sold by virtue of a mortgage after the time limited by law for redemption. MCL 600.5714(1)(g). The district court has jurisdiction over those proceedings. MCL 600.5704. No one may enter premises unless the law permits it, and where entry is permitted it must be peaceable. MCL 600.5711(1), (2). So a buyer who changes your locks without a judgment has not followed that statute.
The court issues a summons. In most of these cases it commands you to appear for trial within 10 days of the date it is issued, and it must be served not less than 3 days before trial. A court may by local rule instead require an appearance within 5 days after service. MCL 600.5735(1)-(4). Unless a court rule says otherwise, the case must be heard within 7 days after your appearance or the trial date and cannot be adjourned beyond that except by agreement. MCL 600.5735(6). The schedule is fast.
After a judgment for possession, the court issues a writ of restitution commanding an officer to restore the plaintiff to possession by removing all occupants and all personal property. MCL 600.5744(1). In the ordinary case the writ cannot issue until 10 days after the judgment. The court may allow it sooner only for the reasons listed in subsection (3), such as forcible entry or possession by trespass. MCL 600.5744(3), (5). If an appeal is taken or a motion for new trial is filed before that 10 days ends and a bond to stay proceedings is filed, the waiting period is tolled until the appeal or motion is finally decided. MCL 600.5744(6).
A possession case does not end other claims. The buyer can join claims for money damages, such as for waste or malicious destruction of the premises, in the same case, and a judgment for possession does not merge or bar other claims. MCL 600.5739(1); MCL 600.5750.
Tenants in a foreclosed house
If you are a tenant and the owner’s house was foreclosed, federal law gives you protection. The buyer takes the property subject to a notice to vacate to a bona fide tenant at least 90 days before its effective date, and to the rights of a bona fide tenant under a bona fide lease. 12 USC 5220 note (Pub L 111-22, div A, title VII, section 702). Whether a lease or tenancy is bona fide, and what happens when the buyer wants to live in the unit, is detailed in the Act. If you rent, keep your lease and your rent records.
Surplus money and deficiency claims
If the house sells for more than the mortgage and the costs of the foreclosure and sale, the money left with the person who made the sale goes on demand to the mortgagor, the mortgagor’s legal representatives or assigns. The exception is a holder of a later mortgage or lien who files a verified written claim before the surplus is paid. The surplus then goes to the circuit court clerk and the court decides who is paid. MCL 600.3252.
The reverse can also happen. If the lender buys the property at the sale and then sues you for a deficiency, you may show as a defense and set-off that the property was fairly worth the amount of the debt at the time and place of sale, or that the amount bid was substantially less than its true value. MCL 600.3280.
Defenses and challenges I look at
- A timely redemption. If the full required amount was paid within the period, the purchaser’s deed is void. MCL 600.3240(1).
- Wrong date or wrong period. The 66-2/3% test, the abandonment presumptions and any adjournment can each change when the period ends. MCL 600.3240(8)-(10).
- An overstated payoff. The recorded affidavit and the proof for added taxes, liens and insurance must match what the purchaser demands. MCL 600.3240(2), (4).
- Defects in the foreclosure, if raised in time. A defect makes the sale voidable, and a homeowner who lets the redemption period expire faces a standing problem. Kim v. JPMorgan Chase Bank, NA, 493 Mich. 98, 103, 115-116 (2012); Bryan v. JPMorgan Chase Bank, 304 Mich. App. 708, 713-715 (2014).
- Improper inspection or lockout. The purchaser has to follow the notice and timing rules for inspections, and entry generally has to go through the court process. MCL 600.3238; MCL 600.5711.
- Tenant status. A bona fide tenant has rights the buyer has to respect. 12 USC 5220 note (Pub L 111-22, div A, title VII, section 702).
Remedies and outcomes the law provides
Redemption voids the purchaser’s deed and keeps the house. MCL 600.3240(1). A defective sale is voidable, so the remedy is to ask a court to set it aside before you lose your rights. Kim v. JPMorgan Chase Bank, NA, 493 Mich. 98, 103, 115-116 (2012). If you were wrongly excluded from the surplus, you claim it under section 3252. If the lender sues for a deficiency after buying the property, the fair-value defense can reduce or defeat it, in whole or in part. MCL 600.3280. And in the possession case, you can ask the court for the time the statute allows before a writ issues, and for a stay on appeal under a bond. MCL 600.5744(5), (6).
How I handle a post-sale foreclosure case
- Pin the date. I read the sheriff’s deed, the certificate of sale, the recorded affidavit and every notice, and I calculate the redemption date under section 3240.
- Get the payoff in writing. I ask the purchaser or designee for the exact amount, the per diem and the proof for any added charges.
- Choose a path. Redeem, negotiate a move-out, sue to set the sale aside while you still can, or prepare for the possession case. The facts and your finances decide.
- Handle the inspections. I respond to the purchaser’s notices in writing so that a refused inspection does not become a possession case.
- Prepare for the district court. If you are served, I answer the summons, raise your defenses and ask for every day the statute allows.
- Protect your money. I watch for a surplus claim, a deficiency suit, and a damages claim that could follow you after the move.
- Plan the move. If you will leave, I negotiate the date, the condition of the house and what the buyer will pay or release.
Ways a post-sale case may end without a trial
- Redemption. You pay the stated amount in time and the deed is void.
- Cash for keys. The buyer pays you to leave by an agreed date with the house in agreed condition.
- Consent judgment. You agree to a judgment for possession with a longer move-out date.
- Repurchase. You or a family member buy the home from the new owner on negotiated terms.
What I need from you
Bring the sheriff’s deed or certificate of sale, every notice of foreclosure you received, and the mortgage and note if you have them. Bring any letter or email from the buyer, the lender or a lawyer, any summons or court paper, and proof of your payments and of what the house is worth. Tell me who lives in the house, whether anyone rents from you, and whether the house is damaged. Do not pay anyone a redemption amount or sign a move-out agreement until I have seen the payoff statement.
Where your Kent County post-sale case will be heard
A possession case after a foreclosure sale is a summary proceeding in the district court. MCL 600.5704. Michigan law sets the Kent County district courts by municipality: the 61st District Court serves the city of Grand Rapids, the 59th serves the cities of Grandville and Walker, the 62A serves the city of Wyoming, the 62B serves the city of Kentwood, and the 63rd serves the rest of Kent County. MCL 600.8128a; MCL 600.8130. Surplus money is paid to the clerk of the circuit court when a later lienholder files a claim, and the circuit court decides who gets it. For Kent County that is the 17th Judicial Circuit. MCL 600.3252; MCL 600.518.
Why people hire me for a foreclosure redemption or eviction
You work directly with me, the lawyer who will appear for you. I tell you the date your rights end, the payoff figure that applies and what each option costs. I do not promise outcomes. I work for homeowners, and I act quickly because the statutory periods are short. My fee depends on the work involved, and we talk about it at the consultation before you decide whether to hire me.
Questions I hear from homeowners after a Michigan foreclosure sale
The date of my Michigan foreclosure sale passed and nothing seems to have happened. Can a sale be postponed?
Yes. Under MCL 600.3220, the person conducting the sale may adjourn it from time to time at the request of the party in whose name the notice of sale was published. The adjournment is made by posting a notice before or at the time of the sale at the place of sale. If one adjournment is for more than 1 week, the notice must also be published in the same newspaper, first within 10 days of the date from which the sale was adjourned, then weekly. No oral announcement is required.
Besides me, who can redeem a home after a Michigan foreclosure sale?
MCL 600.3240(1) names the mortgagor, the mortgagor’s heirs or personal representative, and any person with a recorded interest in the property who lawfully claims under the mortgagor or the mortgagor’s heirs or personal representative. Redeeming the entire premises sold, in time and with the required payment, voids the purchaser’s deed. If a separately sold parcel is redeemed, the deed is void only as to that parcel.
How much do I have to pay to redeem, and who gets the money?
To redeem, you pay the amount bid at the sale, interest from the sale date at the mortgage interest rate, the sheriff’s fee the purchaser paid, and $5 if you pay the register of deeds. You pay the purchaser or the purchaser’s assigns, or the register of deeds for the purchaser’s benefit. A timely, proper redemption voids the purchaser’s deed.
If my house sells at a Michigan foreclosure sale for more than I owe, do I get the extra money?
Generally yes. Under MCL 600.3252, money left with the person who made the sale, after the mortgage and the costs and expenses of the foreclosure and sale are paid, goes on demand to the mortgagor, the mortgagor’s legal representatives, or assigns. The exception is a holder of a later mortgage or lien who files a verified written claim at or before the time the surplus is paid over. The surplus then goes to the circuit court clerk, and the court decides who is paid.
Can the person who bought my house at the foreclosure sale come inside before the redemption period ends?
Only in limited ways. Under MCL 600.3238, the purchaser may make one initial interior inspection after giving at least 72 hours notice at a reasonable time, and any number of exterior inspections. Later requests for information about the interior are limited to once a calendar month and 3 times in 6 months unless the purchaser has reasonable cause to believe damage is imminent or has occurred.
My landlord’s house was foreclosed. Can the new owner make me leave right away?
Not necessarily. Under the federal Protecting Tenants at Foreclosure Act, the buyer takes the property subject to a bona fide tenant’s right to a notice to vacate at least 90 days before it takes effect. A tenant with a bona fide lease can generally stay to the end of the term, unless the buyer will occupy the unit as a primary residence, in which case the 90-day notice still applies. State or local law giving more protection is not displaced.
Can I still challenge a foreclosure after the redemption period has ended?
It is difficult. In Bryan v JPMorgan Chase Bank, the Court of Appeals held that when a mortgagor does not redeem, all of the mortgagor’s rights in and to the property are extinguished under MCL 600.3236, and it adopted earlier decisions stating that filing suit shortly before the deadline does not toll the redemption period.
Can the redemption period be cut to one month if the lender says my house is abandoned?
It can, if the lender follows MCL 600.3241 or MCL 600.3241a. For residential property of up to 4 units, the redemption period is 1 month if abandonment is conclusively presumed under section 3241 (MCL 600.3240(9)). Under section 3241a it is 30 days or until the 15-day notice window runs, whichever is later (MCL 600.3240(10)). Each statute requires an inspection and notices, and each lets an occupant defeat the presumption by responding in time.
Related Michigan pages
- Grand Rapids real estate attorney
- Foreclosure defense
- Tax foreclosure
- Land contract forfeiture
- Grand Rapids civil litigation attorney
- Foreclosure, mortgage and tax foreclosure
- Real estate FAQs
- Michigan legal FAQs
I represent homeowners after foreclosure sales in Kent County and West Michigan. Contact me 24/7 by phone or email. Your Rights, My Fight! Call for a free initial consultation.
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Law Offices of Mitchell S. Bisson, 2828 Kraft Ave SE, Suite 295, Grand Rapids, MI 49512, serving Kent County and West Michigan.
This page provides general information about Michigan law and is not legal advice. Reading it does not create an attorney-client relationship. Laws change and every case turns on its own facts. Consult a licensed attorney about your specific situation.