Brandt Fisher Alward & Roy, P.C. - Redemption Period Chart, Foreclosure by Advertisement

Brandt, Fisher,
Alward & Roy, P.C.
Attorneys at Law

Senate Bill 1203 amended MCL 600.3240, which describes the applicable redemption periods following a Foreclosure by Advertisement. The amendment took effect on January 3, 2007. Even after the amendment, this section of the Statute continues to be extremely and unnecessarily confusing. This is a classic example of poorly drafted statutory law in which the exceptions now swallow the rule and to decipher the intended result requires numerous readings (and some would argue a crystal ball and decoder ring).

As you can see from the chart below, what is unfortunate is that when broken down into its most basic parts and organized differently, the length of the redemption period is not as complicated as the Statute would leave you to believe.

Redemption Period Chart
Foreclosure by Advertisement (Michigan)
After January 3, 2007 Amendment

Residential Property not exceeding 4 Units
NOT ABANDONED
Size of Property	Current Balance as % of the original amount of indebtedness
Size of Property	Greater than 66 ²/₃%	Less than or equal to 66 ²/₃%
*Greater than 3 Acres*	1 Year	1 Year
*Less than or Equal to 3 Acres*	6 Months	1 year

Residential Property not exceeding 4 Units
ABANDONED (PRE-COMMENCEMENT)
Size of Property	Current Balance as % of the original amount of indebtedness
Size of Property	Greater than 66 ²/₃%	Less than or equal to 66 ²/₃%
*Greater than 3 Acres*	1 Month	3 Months
*Less than or Equal to 3 Acres*	1 Month	3 Months

Residential Property not exceeding 4 Units
ABANDONED (POST-COMMENCEMENT)
Size of Property	Current Balance as % of the original amount of indebtedness
Size of Property	Greater than 66 ²/₃%	Less than or equal to 66 ²/₃%
*Greater than 3 Acres*	30 Days or 15 Days from posting and mailing of Abandonment Letter, whichever is later.	30 Days or 15 Days from posting and mailing of Abandonment Letter, whichever is later.
*Less than or Equal to 3 Acres*	30 Days or 15 Days from posting and mailing of Abandonment Letter, whichever is later.	30 Days or 15 Days from posting and mailing of Abandonment Letter, whichever is later.


Commercial, Industrial, and Residential Property in excess of 4 Units
OTHER
*Commercial, Industrial, and Residential Property in excess of 4 Units*	6 Months regardless of size, indebtedness or abandonment status.


© H. Douglas Shepherd IV, Brandt, Fisher, Alward & Roy, P.C. 1241 E. Eighth Street, Traverse City, MI 49696, (231)941-9660, dshepherd@bfarlaw.com No Public use, reprint, dissemination or distribution of this chart is permitted without Mr. Shepherd’s express prior written authorization.

H. Douglas Shepherd IV is an attorney with the law firm of Brandt, Fisher, Alward & Roy, P.C. and concentrates his practice in the areas of real estate, banking, retail and commercial collections, with an emphasis on Foreclosure by Advertisement. Mr. Shepherd can be reached at (231)941-9660 and dshepherd@bfarlaw.com.

Redemption Period Chart in Foreclosure by Advertisement
by H. Douglas Shepherd, IV, J.D.