Foreclosure Redemption Chart

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

Click to download the PDF.

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 theoriginal amount of indebtedness 
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 theoriginal amount of indebtedness 
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 theoriginal amount of indebtedness 
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 & Pezzetti, 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 & Pezzetti, 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.

©BRANDT, FISHER, ALWARD & PEZZETTI, P.C. 

This article is provided for informational purposes and should not be acted upon without professional advice. -