Right to redeem your home after the sheriff’s sale — usually 6 months
MCL 600.3240(8)
In plain words
After a Michigan sheriff’s sale you usually still have time to redeem (buy back) the home, and you can generally keep living there. For a home of up to 4 units, the period is 6 months if more than two-thirds of the original loan was still owed; otherwise it is usually 1 year. It can be as short as 30 days if the home is found abandoned.
Who is protected
Michigan owners whose home was sold at a foreclosure-by-advertisement sale.
When it applies
- Only in Michigan.
- Only after the foreclosure sale.
What you can do
Put the deadline on your calendar
Get a copy of the sheriff’s deed; it states when redemption ends.
Deadline: The redemption expiration date on the sheriff’s deed (often 6 months after the sale)
Open the toolCompare your options
Use the redemption months to refinance, sell the home and keep the equity, or negotiate with the buyer.
Open the toolRead the Michigan guide
Our Michigan page explains the whole process step by step, with its sources and free local help.
Open the tool
Honest limits
- Redeeming means paying the full sale price plus interest and allowed costs.
- Damaging the property or failing to keep it up can shorten or end the period.
- This is general education, not legal advice. Laws change and details depend on your papers and your court; check the current law or ask a lawyer or legal aid.
The law
- State lawRedemption periods after sale
MCL 600.3240(8)
Exact part: (8)
What it says: For residential property of up to 4 units owing more than 66-2/3% of the original debt, redemption is 6 months.
Read the official texthttps://law.justia.com/codes/michigan/chapter-600/statute-act-236-of-1961/division-236-1961-32/section-600-3240/
Court cases
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner lostSame topicMilton v. U.S. Bank National Ass'n
Milton v. U.S. Bank Nat'l Ass'n, 508 F. App'x 326 (5th Cir. 2013) (per curiam) (unpublished)
an agreement to delay a Texas foreclosure falls within the statute of frauds and must be in writing to be enforced
- Homeowner lostSame topicBFP v. Resolution Trust Corp.
BFP v. Resol. Tr. Corp., 511 U.S. 531 (1994)
the price received at a non-collusive foreclosure sale that complied with state law is reasonably equivalent value under the Bankruptcy Code
Related rights
Right to 4 weeks of published notice and a posted notice before a sheriff’s sale
MCL 600.3208
Most Michigan foreclosures are “by advertisement,” outside court. The notice of sale must be published at least once a week for four weeks in a county newspaper, and a copy must be posted on the property within 15 days after the first publication. The law does not require the notice to be handed to you, so watch for postings and newspaper notices.
Read this rightRight to surplus money from a sheriff’s sale
MCL 600.3252
If a Michigan foreclosure sale brings in more than the amount owed and costs, the extra money must be paid to the mortgagor (the borrower) on demand. Junior lienholders may also claim it, so ask quickly.
Read this rightThe government cannot keep your home equity beyond the tax debt
U.S. Const. amend. VTakings Clause
If your home is taken or sold to pay property taxes, the government may collect what you owe, but it may not keep the extra value. Keeping the surplus is a "taking" of your property without just compensation, which the Fifth Amendment forbids (Tyler v. Hennepin County, 2023). You may be able to claim the surplus, but you usually must follow your state's claim process and deadlines.
Read this rightAfter a discharge, creditors cannot collect the wiped-out debt from you
11 U.S.C. § 524(a)(2)
A bankruptcy discharge wipes out your personal liability for most debts in the case. After that, the law forbids creditors from suing, calling or otherwise trying to collect a discharged debt from you personally. A court can hold a creditor in contempt if there was no fair doubt that its conduct was barred.
Read this rightRenters get at least 90 days' notice after a foreclosure
12 U.S.C. § 5220 note(Pub. L. 111-22, div. A, § 702(a)–(b))
If you rent a home that goes through foreclosure, the new owner must give you a notice to move at least 90 days before you have to leave. If you have a real (bona fide) lease signed before the foreclosure notice, you can usually stay until the lease ends. The exception is when the new owner will live in the home; even then you still get the 90 days' notice.
Read this rightRight to argue the sale price was below fair value before paying a deficiency
MCL 600.3280
Michigan allows a lender to sue for a deficiency after a foreclosure by advertisement. But if the lender bought the home at the sale, you can raise as a defense that the price was substantially less than the home’s true value.
Read this right