Michigan at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | Michigan allows both. A mortgage that contains a power of sale may be foreclosed by advertisement, without a lawsuit, ending in a public sale made by the person named in the mortgage or by the sheriff, undersheriff or a deputy sheriff. The circuit court also has jurisdiction to foreclose a mortgage in a court case (judicial foreclosure). MCL 600.3201; MCL 600.3216; MCL 600.3101 Show the source textEvery mortgage of real estate, which contains a power of sale, upon default being made in any condition of such mortgage, may be foreclosed by advertisement |
| Who holds foreclosure surplus | After a foreclosure by advertisement, the officer or other person who made the sale holds any surplus money and must pay it on demand to the mortgagor or the mortgagor's legal representatives or assigns. If a later mortgage or lien holder files a sworn written claim with that person first, the surplus is paid to the clerk of the circuit court for the county and the court decides who is entitled to it. After a judicial foreclosure, any surplus is brought into court for the defendant or whoever is entitled to it, subject to the court's order. MCL 600.3252; MCL 600.3135(1) Show the source textthe surplus shall be paid over by the officer or other person on demand, to the mortgagor, his legal representatives or assigns |
| Claim window for foreclosure surplus | Section 600.3252 sets no deadline for the former owner to demand the surplus and does not say what happens to surplus that is never claimed. A competing lienholder's sworn claim must be filed at the time of the sale or before the surplus is paid over. In a judicial foreclosure, if surplus stays in court for 3 months without being applied for, the court may order it put out at interest for the benefit of the defendant. MCL 600.3252; MCL 600.3135(2) Show the source textunless at the time of the sale, or before the surplus shall be so paid over, some claimant or claimants, shall file with the person so making the sale, a claim or claims, in writing |
| Tax sale excess proceeds | Michigan is a tax foreclosure state, not a tax lien certificate state: the circuit court enters a foreclosure judgment, redemption rights expire on the March 31 after the judgment, and title vests in the foreclosing governmental unit (the county treasurer, or the State where the county has opted for that), which then sells the property. To claim remaining proceeds, a person who held an interest must serve the foreclosing governmental unit with a notarized notice of intention on the Department of Treasury form by the July 1 immediately following the effective date of the foreclosure, and then file a motion in the same circuit court foreclosure case between February 1 and May 15 after the sale. The court deducts a 5% sale commission for the foreclosing governmental unit, and payment is due within 21 days of the court's order. MCL 211.78t(2), (3), (4), (9), (10), (12); MCL 211.78k(5)-(6); MCL 211.78(8) Show the source textby the July 1 immediately following the effective date of the foreclosure of the property, a claimant seeking remaining proceeds for the property must notify the foreclosing governmental unit using a form prescribed by the department of treasury |
| Redemption after the sale | Yes. After a foreclosure by advertisement the former owner can redeem by paying the bid amount plus interest and certain costs. The period is 6 months for residential property of 4 units or fewer when the amount claimed due at the date of the foreclosure notice is more than 66-2/3% of the original debt, and also 6 months for commercial, industrial or multifamily property over 4 units; 1 year for agricultural property and in cases the other rules do not cover; and 1 month, or 30 days, if the property is determined to be abandoned. After a judicial foreclosure sale the period is 6 months after the sale. MCL 600.3240(1), (7)-(12); MCL 600.3140(1) Show the source textif the amount claimed to be due on the mortgage at the date of the notice of foreclosure is more than 66-2/3% of the original indebtedness secured by the mortgage, the redemption period is 6 months |
| Rules for recovery companies | Tax foreclosure: the statute says its court process is the exclusive way to claim remaining proceeds and that the right to claim is not transferable except by will or inheritance. Unclaimed property: an agreement to pay compensation to recover property reported to the State is unenforceable if made within 24 months after the property was paid or delivered to the State, and a locator must register with the Department of Treasury (a $1,200 fee, renewed every 4 years) before it can receive account information. No percentage fee cap appears in these sections, and no Michigan statute was found that regulates fees for recovering mortgage foreclosure surplus. MCL 211.78t(11); MCL 567.256; MCL 567.256a Show the source textA right to claim remaining proceeds under this section is not transferable except by testate or intestate succession. |
How surplus funds arise in Michigan
When a home in Michigan is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in Michigan
We confirm the sale figures in the public record, identify which office in Michigan is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In Michigan that program is the Michigan Unclaimed Property (Michigan Department of Treasury).
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Michigan law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in Michigan
Michigan regulates this kind of service. Tax foreclosure: the statute says its court process is the exclusive way to claim remaining proceeds and that the right to claim is not transferable except by will or inheritance. Unclaimed property: an agreement to pay compensation to recover property reported to the State is unenforceable if made within 24 months after the property was paid or delivered to the State, and a locator must register with the Department of Treasury (a $1,200 fee, renewed every 4 years) before it can receive account information. No percentage fee cap appears in these sections, and no Michigan statute was found that regulates fees for recovering mortgage foreclosure surplus. (MCL 211.78t(11); MCL 567.256; MCL 567.256a)
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in Michigan
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for Michigan, from locating the funds to filing the claim.
After a foreclosure by advertisement, the officer or other person who made the sale holds any surplus money and must pay it on demand to the mortgagor or the mortgagor's legal representatives or assigns. If a later mortgage or lien holder files a sworn written claim with that person first, the surplus is paid to the clerk of the circuit court for the county and the court decides who is entitled to it. After a judicial foreclosure, any surplus is brought into court for the defendant or whoever is entitled to it, subject to the court's order.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.