In Michigan, you don’t lose your home the day the sheriff sells it. The law gives you a redemption period after the sale. For most owner-occupied homes, it is six months. During that time you can pay to take the property back, sell it, or plan your move. When the period ends, your rights in the home end with it.
This guide explains how the clock is set, what can shorten or lengthen it, how the redemption amount is figured, and which options you have while the clock runs.
TL;DR
- Michigan gives foreclosed homeowners a redemption period after the sheriff sale, and the exact last day is written on the sheriff’s deed paperwork.
- For a home of up to four units, it is 6 months if more than 66-2/3% of the original loan was still owed at the notice of foreclosure. Otherwise it is generally 1 year. Abandonment can cut it to 30 days or 1 month.
- To redeem, you pay the sale bid, interest from the sale date, the sheriff’s fee and certain qualifying costs.
- You can usually stay in the home, and you can sell it before the period ends. After that, your title and interest are gone.
Table of Contents
- What the redemption period is, and when it starts
- How long the period lasts
- What it costs to redeem
- What you can do while the clock runs
- Selling before the deadline: the timing problem
- What happens when the period ends
- Our perspective
- Compare buyers and agents before your date arrives
- A checklist for the first two weeks after the sale
- FAQ
- Sources
What the redemption period is, and when it starts
Most states that foreclose without going to court give the owner no second chance once the auction is over. Michigan does provide a redemption period after the sale. That changes how you should think about the whole process.
The sale is a public auction run by a deputy sheriff. The sheriff’s deed goes to the highest bidder, or to the lender or foreclosing party if nobody else bids. In practice, the lender is often the buyer.
The redemption clock starts at that sale, not when you first miss a payment. If you want to see how long the stretch before the auction usually lasts, our guide on how long foreclosure takes in Michigan covers the earlier steps.
The period exists to give you reasonable time to redeem the home, refinance it, sell it in a short sale, or find a new place to live. Treat it as working time, not just waiting time.
Where to find your actual deadline
Don’t count months on a calendar and hope you got it right. The last day to redeem is stated in a certificate signed by the deputy sheriff and attached to the sheriff’s deed. That deed is recorded with the county Register of Deeds. In Metro Detroit, that means the offices for Wayne, Oakland or Macomb County, depending on where the home sits.
If you haven’t seen that document, ask the Register of Deeds for a copy of the recorded sheriff’s deed and read the redemption date on it. Write the date on your calendar and set reminders weeks ahead.
How long the period lasts
The length is set by MCL 600.3240, and it depends on the property and the loan. Here is how it applies to a typical Metro Detroit homeowner.
| Situation | Redemption period |
|---|---|
| Residential property of up to 4 units, with more than 66-2/3% of the original loan still owed at the date of the notice of foreclosure | 6 months |
| Residential property of up to 4 units, where that threshold isn’t met and no special rule applies | 1 year |
| Property found to be abandoned | 1 month or 30 days, depending on the rule that applies |
Source for all rows: Michigan Legislature, MCL 600.3240.
Why most homeowners get six months
The six-month rule turns on the balance. The statute looks at what the lender claimed was due on the date of the foreclosure notice and compares it with the original loan amount. If the claimed amount is more than 66-2/3% of the original debt, you get six months.
A homeowner who took out a loan a few years ago and has paid it down only a little will usually be above that line. Someone who has paid the loan well down may fall below it and have a longer period. Your loan paperwork and the foreclosure notice will show the figures. If you aren’t sure which side of the line you are on, a Michigan housing counselor or attorney can read the numbers against the statute.
Abandonment can shorten the period
The law lets the period shrink to one month or 30 days when a property is abandoned. The practical lesson is simple: don’t leave the home empty and unmaintained while you still hold redemption rights. If you plan to move out, tell the purchaser in writing and keep records, and talk to a housing counselor before you hand over the keys.
Can a court extend it?
Rarely. Michigan courts may allow an equitable extension only on a clear showing of fraud, accident or mistake tied to the sheriff’s sale itself, as the Court of Appeals described in Bank of New York Mellon Trust Company v Robinson (2013). Hardship, a pending job offer or a late paycheck doesn’t qualify. Plan as if the date on the certificate is final. If you believe something went wrong with the sale itself, see a foreclosure attorney right away, because delay hurts that kind of claim.
What it costs to redeem
Redeeming means paying the buyer back what they paid, plus what the law adds. Under MCL 600.3240, the amount includes:
- the amount of the sale bid
- interest on that bid at the mortgage rate, running from the sale date
- the sheriff’s fee
- qualifying costs paid by the purchaser
Michigan Legal Help describes the same basics in plain terms: the sale price, some fees from the sale, and interest from the sale date.
A rough illustration
This example uses made-up numbers to show how the pieces fit. It is not a quote.
Say the lender bought the home at auction with a bid of $120,000, and the mortgage rate was 6%. Simple interest on $120,000 at 6% for a year is $7,200, or about $600 a month. If you redeem three months after the sale, interest would be around $1,800. Add the sheriff’s fee and any qualifying costs, and the total would be somewhat above $121,800.
The point: the longer you wait, the more interest builds, and the bid amount is usually close to the full loan balance. That is why redemption in cash is out of reach for many families. Some pay it by refinancing or with help from relatives, but don’t count on a lender approving a new loan on a home that has already been sold at auction. Ask early.
How to pay
You pay the purchaser or an assignee, or pay the Register of Deeds where the deed is deposited. The Macomb County Register of Deeds notes that redemption can go through its office or directly through the grantee of the sheriff’s deed.
Before sending money:
- Ask for a written, itemized redemption figure with a good-through date.
- Confirm who holds the sheriff’s deed now. It may have been assigned.
- Pay in a traceable form, such as a certified check or wire, as directed.
- Get a receipt and confirm the redemption is recorded.
Do not pay a stranger who calls offering to “handle” the redemption for a fee. Verify everything with the Register of Deeds office yourself.
What you can do while the clock runs
The period is more than a countdown. Homeowners can live in the property without making mortgage payments, according to the Michigan State Housing Development Authority. That frees up cash for a move or a sale plan. It comes with duties.
Your responsibilities
The same state guidance says you should keep up the property, utilities and insurance, and you must allow the purchaser to inspect. If you unreasonably refuse inspections or damage the home, the purchaser can start eviction proceedings to get possession and end your redemption period. Stripping fixtures, letting pipes freeze or ignoring an inspection request can cost you the very rights you are trying to use.
Your four main paths
1. Redeem. Pay the full amount, as described above, and keep the home. This works best when you’ve come into funds, a refinance is lined up, or you can settle the underlying problem.
2. Sell the home. You may sell during the period. A sale at market value can pay off the redemption amount and may leave you proceeds. Michigan State University Extension notes that you can sell or try a short sale, though a short sale needs the lender’s agreement when proceeds fall short of the mortgage balance. Our guide to Michigan short sales walks through that process, and our piece on selling a Michigan house as is covers net proceeds when the home needs work.
3. Negotiate “cash for keys.” If you can’t redeem, Michigan Legal Help says you can try to work out a cash-for-keys deal: you move out before the period ends in exchange for money from the buyer. Get any deal in writing before you move.
4. Plan your move. If the numbers don’t work, use the months to find housing, save a deposit and move on your own terms instead of facing an eviction filing.
Selling before the deadline: the timing problem
Selling is the path with the most upside, and it is also the tightest on time. A traditional listing with showings, an appraisal, a buyer’s financing and a closing can take months. Six months from the sale date is not much once you subtract the time to hire an agent, prepare the house and wait for a contract.
Things that help:
- Start in week one. Interview agents or buyers right after the sale, not in month five.
- Get a payoff figure early. You need to know the redemption amount so you can tell whether a sale price covers it.
- Pick a buyer who can close fast. A buyer paying cash can close in days or weeks, with no lender approval to wait for. Compare several offers, since they vary. Our ranking of cash home buyers across Metro Detroit shows how local companies stack up.
- Allow a buffer. Aim to close well before the last day. A deal that closes one day late doesn’t count.
If the home has inherited or probate complications, see selling probate real estate in Michigan. If you are still before the sale, our guide to the first 30 to 120 days covers ways to avoid reaching the auction at all, and a deed in lieu of foreclosure is another route in some cases.
What happens when the period ends
If nobody redeems, the result is final. When the redemption period expires without redemption, the homeowner’s rights, title and interest in the property are extinguished. The purchaser becomes the full owner, and you no longer have standing to challenge the foreclosure.
The practical meaning for equity: once the deadline passes, you can no longer sell the house yourself and keep what is left after paying the debt. If your home is worth more than the redemption amount, a sale before the deadline is how you capture that value. After the deadline, that option is gone.
After expiration, the new owner can seek possession through eviction proceedings if you are still in the home. Moving out on your own schedule, before that, is nearly always better for your finances and your record.
Our perspective
We read a lot of foreclosure stories from Metro Detroit homeowners, and the same pattern repeats. People treat the sheriff sale as the end, so they stop acting. Then the redemption deadline passes and the equity they could have kept goes with it.
The six months are the most valuable stretch in the whole process. You are living in the home without mortgage payments, you hold the right to sell, and you have time to compare offers if you start early. The owners who come out best are the ones who get a payoff figure, line up two or three real offers and choose before the deadline pressure sets in.
That is why we publish independent rankings of cash home buyers, agents and lenders for Wayne, Oakland and Macomb counties. We don’t accept payment for placement, and we update rankings quarterly so you can compare local providers on the same criteria. Use them to shortlist, ask each provider for a written timeline and net-proceeds figure, and have an attorney or HUD-approved housing counselor review anything you sign.
Bryan
Compare buyers and agents before your date arrives
If selling is your best route, the next step is comparing who can close in time. CompareSpot ranks local providers by research and customer sentiment, and providers can’t buy a higher spot. Start with our list of the best cash home buyers in Metro Detroit, or see the top real estate agents in Metro Detroit if you have time for a market listing.
Bring your redemption deadline to every conversation and ask each provider whether they can close before it, with a margin.
A checklist for the first two weeks after the sale
- Get the recorded sheriff’s deed and note the redemption date.
- Ask who holds the deed now, and get the current redemption figure in writing.
- Keep the utilities on, keep the insurance active and maintain the home.
- Answer any inspection requests from the purchaser in a reasonable way.
- Decide your main path: redeem, sell, cash for keys or move.
- Book a free session with a housing counselor or legal aid office. Michigan Legal Help is a good place to find resources.
- Collect two or three offers if you plan to sell, and compare closing dates and net amounts, not just headline prices.
- Set a personal deadline at least two to three weeks ahead of the official one.
If the home has damage, such as flooding, that may change who will buy it and how quickly. See our guide to selling a water-damaged house in Metro Detroit.
FAQ
Is the redemption period always six months in Michigan?
No. For residential property of up to four units, it is six months when more than 66-2/3% of the original loan was still claimed due at the notice of foreclosure. Otherwise it is generally one year, and abandonment can reduce it to a month or 30 days. Check the date on the sheriff’s deed certificate for your property. (MCL 600.3240)
Can I stay in my house during the redemption period?
Yes, in most cases you can stay without making mortgage payments. You should keep up the property, utilities and insurance, and let the purchaser inspect. Unreasonable refusals or damage can lead to eviction proceedings that end your redemption rights, so treat the home carefully.
Can I sell my home after the sheriff sale?
Yes. You can sell during the redemption period, and a sale can pay off the redemption amount. If the price is below your mortgage balance, a short sale needs the lender’s agreement. Start early, because closing has to happen before the deadline.
Who do I pay to redeem?
You pay the purchaser or an assignee of the sheriff’s deed, or you can pay through the Register of Deeds where the deed is deposited. Get an itemized figure and a receipt, and confirm the redemption is recorded.
Can a judge give me more time?
Only in narrow cases. Courts have allowed an extension on a clear showing of fraud, accident or mistake connected to the sheriff’s sale itself. Financial hardship alone isn’t enough, so speak with a foreclosure attorney quickly if you think the sale was flawed.
Sources
- Michigan Legislature, MCL 600.3240
- Macomb County Register of Deeds, Mortgage Foreclosure
- Nolo, Michigan Foreclosure Redemption Period Explained
- Michigan Court of Appeals, Bank of New York Mellon Trust Company v Robinson (2013)
- Michigan Legal Help, Foreclosure and Eviction for Homeowners
- MSHDA, Stages of Foreclosure
- MSU Extension, Do I have to move out of my home before the sheriff sale?
- State of Michigan, Home Foreclosure