Does the state of Michigan allow deficiency judgements for foreclosure?

Asked over 3 years ago - Allen Park, MI

And if so, what are the chances that lendor will actually seek a deficiency judgement?

Attorney answers (3)

  1. Francis N. Soave

    Contributor Level 10

    Answered . A mortgage lender in Michigan has a choice when it comes to foreclosure. Either foreclosure by advertisement, or jduicial foreclosure. The election of remedies doctrine exists in Michigan, so the lender may not use both. If the lender chooses judicial, it may request a deficiency judgment after sale. If the choice is advertisement, the lender may only seek a deficiency if it does not bid at the sale, or bids less than the full balance of the note. This is rare. Most residential lenders in Michigan foreclose by advertisement, and most bid the full balance of the note at the sherrif's sale. In such cases, they may not seek a deficiency. The answer in your case depends on the specific facts, and which remedy, and which choices the lender makes.

  2. Richard C. Angelo Jr.

    Contributor Level 6

    Answered . The short answer to your question, is Yes. Lenders can seek a deficiency judgment after conducting the foreclosure sale in Michigan. Whether they will or not depends upon numerous factors including what type of loan you have, whether it is more advantageous to forgive the remaining debt (assuming it is not your primary residence).

    It is becoming more common for lenders to file suit for deficiencies in Michigan. Chances are now greater than 4-5 years ago that the lender will pursue deficiencies.

  3. Theodore Lyons Araujo


    Contributor Level 20

    Answered . Here are some Quick Facts about foreclosure in Michigan:

    - Judicial Foreclosure Available: Yes

    - Non-Judicial Foreclosure Available: Yes

    - Primary Security Instruments: Deed of Trust, Mortgage

    - Timeline: Typically 60 days

    - Right of Redemption: Yes

    - Deficiency Judgments Allowed: Varies


    Judicial Foreclosure


    Non-Judicial Foreclosure


    Power of Sale Foreclosure Guidelines






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