This page is given as informational purposes only and should not be interpreted as legal advice.
The status of someone holding a land contract, mortgage or lien on a piece of property is as a secured creditor. In a default situation, creditor will foreclose on the property and either receives money owing him or he will receive the property as a result. Macomb County Register of Deeds handles only mortgage, lien and land contract foreclosures. A property may also be foreclosed on for delinquent property taxes. The Macomb County Treasurer Office handles tax foreclosures at 1 South Main Street, Mt. Clemens, MI 48043. (586) 469-5190.
Foreclosure may occur through either the judicial process (resulting in a Clerk’s Deed) or by advertisement (resulting in a Sheriff’s Deed). Procedure selected is dependent on “power of sale” provisions contained in the mortgage or security instrument. Land contracts can be foreclosed only by judicial foreclosure action and most mortgages/liens foreclosure process is through the Sheriff’s Department by advertisement.
Homeowners in foreclosure may now request a "Payoff Letter" through the Register of Deeds to find out how much they owe. CLICK HERE to download the request form.
Foreclosure by Advertisement – Sheriff’s Deed
- Written notice of default is given by the lender (mortgagee) to the borrower (mortgagor).
- Notice of mortgage foreclosure sale for Macomb County properties is published in the Macomb County Legal News for four (4) consecutive weeks prior to public sale. Information pertinent to each property is listed in this publication, usually by mortgagor name and legal description rather than property address. The property address may or may not be cited on the mortgage foreclosed upon. A search for address information may be obtained through one of the following -- a visit to Register of Deeds (search fees may apply) or online on your computer (credit card needed for search fees) or possibly local tax records (city/township where property is located).
- On appointed date and time, a public sale is conducted at the courthouse by the sheriff, or a deputy sheriff on behalf of the sheriff. In Macomb County the public sale is held every Friday morning at 10:00 a.m. in the Jury Room (fifth floor) of the Macomb County Court Building DIRECTIONS. The County Official who conducts the sale is acting in the capacity of an “auctioneer”.
- A “Sheriff’s Deed” is issued to the highest bidder, whom will be named as the grantee of the sale. If no one bids on the property, the lender becomes the grantee of the sale. If a third party bidder bids on the property, the bid must be at least sufficient to satisfy indebtedness to the lender or more.
- Once sale takes place, the sheriff or deputy sheriff signs the certificate of auctioneer and the deed shall be (or as soon as practicable) recorded within 20 days after the sale. MCL 600.3232.
- Recorded Sheriff’s Deeds are held in the Register of Deeds office for the full period of redemption (redemption period is stated in the Sheriff’s Deed). A redemption period can be anywhere from 30 days or 1 month, 6 months, or 1 year, depending on various factors per MCL 600.3240; and MCL 600.3145. Redemption period may also be affected by MCL 600.3241; MCL 600.3241a
- Any purchaser of foreclosed property that pays taxes or insurance on the property is entitled to recover these expenses, with interest, if the property is redeemed. In order to be eligible to collect for these expenses, the purchaser must record an affidavit of taxes or insurance MCL 600.3145;MCL 600.3240. The purchaser should seek legal counsel if necessary.
- During the redemption period, the mortgagor, mortgagor’s heirs, executors, or administrators or any person lawfully claiming from or under the mortgagor may redeem the property by dealing directly with the grantee of the foreclosure deed, their agent/designee or the Macomb County Register of Deeds Office by tendering the correct redemption amount and pertinent information to the Register of Deeds, which will require a $5.00 fee for the care and custody of the redemption money (for each foreclosure document being redeemed) Pursuant to MCL 600.3240 Macomb County Register of Deeds office may determine the amount necessary for redemption if a request is submitted along with a fee of $25.00. CLICK HERE to download the request form. Register of Deeds will only forward the amount to the grantee of the sale and it will be determined by the grantee of the sale if the amount is correct to redeem.
- If redemption occurs, it is the responsibility of the grantee from the foreclosure sale to prepare and record a redemption certificate upon approval of redemption funds, pursuant to HB 929 and HB 931.
- If no redemption occurs, the deed becomes operative at the conclusion of the redemption period.
Judicial Foreclosure – Clerk’s Deed
- In a judicial foreclosure, the vendor of the Land Contract or a mortgagee of a mortgage files a complaint in Circuit Court after default occurs.
- The judge enters a foreclosure judgment, which allows the lender (land contract vendor or mortgagee) to schedule a foreclosure sale.
- A public sale is conducted and if the property is sold, the buyer’s name and bid is entered on the Clerk’s Deed. If the property is not sold, land contract vendor or mortgagee name is entered on the deed.
- The redemption period is stated on the deed, and may be 6 months from the date of sale or as set by the judge. The deed shall be (or as soon as practicable) recorded within 20 days after the sale. MCL 600.3232.
- MCL 600.3140 and MCL 600.3145 govern redemption in judicial foreclosures.
- Redemption procedures for a judicial foreclosure are the same as a foreclosure by advertisement (Sheriff’s Deed).