Michigan — Tax & Mortgage Foreclosure

Legal information, not legal advice. Verify against the cited primary sources before acting. Last verified: 2026-06-01.

Michigan is a tax-deed state with judicial in-rem property-tax foreclosure under the General Property Tax Act (GPTA, 1893 PA 206). It is nationally important to surplus law because the Michigan Supreme Court’s rafaeli-v-oakland-county-2020 held — three years before tyler-v-hennepin-county reached the same result under the federal Fifth Amendment — that a foreclosing unit’s retention of surplus proceeds beyond the tax debt is an unconstitutional taking under the Michigan Constitution. The Legislature then created the MCL 211.78t claim process to return “remaining proceeds” to former interest-holders.

0. Identity & Classification

• Recording unit: county (count: 83)
• Tax sale type: tax deed (in-rem judicial foreclosure; the county/State, as Foreclosing Governmental Unit “FGU,” takes fee-simple title by judgment, then sells). No tax-lien certificates.
• Tax foreclosure process: judicial (in-rem; circuit court judgment of foreclosure under MCL 211.78k)
• Mortgage foreclosure process: both — foreclosure by advertisement (non-judicial, MCL 600.3201 et seq.) is the dominant path; judicial foreclosure (MCL 600.3101 et seq.) is also available.
• Selling authority: county treasurer as FGU (the State of Michigan/DNR is the FGU for counties that have not elected to foreclose themselves)
• Statutory home: General Property Tax Act, 1893 PA 206, MCL 211.1–211.157 — https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78
• Tyler v. Hennepin compliance: reformed_post_Tyler (and pre-Tyler). Michigan pre-empted the issue: rafaeli-v-oakland-county-2020 (Mich 2020) held surplus retention unconstitutional under Const 1963, art 10, § 2; the Legislature added the MCL 211.78t “remaining proceeds” claim mechanism. The Court of Appeals upheld that structure against facial challenge for sales that generate proceeds (barry-county-treasurer-foreclosure-2024), while the Supreme Court held that where a unit takes the property with no public auction (right of first refusal), 78t does not apply and the Rafaeli takings remedy controls (jackson-v-southfield-2025).

1. Tax Sale Mechanics

• What is sold: a deed (fee-simple title) to the foreclosed property — not a lien certificate. After judgment vests title in the FGU (MCL 211.78k), the property is sold at public auction (MCL 211.78m). Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78m
• Bidding method: highest bid (deed) at public auction; sale to the person bidding at least the minimum bid, or the highest amount above it (MCL 211.78m(2)).
• Interest / penalty (delinquency, not “certificate” interest): On forfeiture to the county treasurer (March 1), additional interest at a noncompounded 1/2% per month (6%/yr) is added to the originally-returned delinquent taxes, plus a $175 forfeiture fee (MCL 211.78g). Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78g
• Minimum bid composition: all delinquent taxes, interest, penalties, and fees due, and may include additional FGU expenses (MCL 211.78m(16)(c)).
• Sale frequency: annual cycle, keyed to the calendar of forfeiture (Mar 1) → judgment (by ~Mar) → redemption cutoff (Mar 31) → auction (summer/fall).
• Typical month: Auctions run on/after the third Tuesday in July and must conclude before the first Tuesday in November (MCL 211.78m(2)).
• Venue: both — many counties and the State (DNR) sell online via tax-sale.info; some in person. Source: https://www.michigan.gov/taxes/property/forfeiture-foreclosure/county/auctions
• Platform vendors: Tax-Sale.info (Title Check, LLC) is the predominant vendor for State-as-FGU counties and many self-foreclosing counties.
• Right of first refusal (before public auction): the State, then the city/village/township/city authority, then the county, may purchase at the greater of fair market value or minimum bid before the property reaches public auction (MCL 211.78m(1)).
• Subsequent taxes (“subs”): not applicable in the certificate sense — Michigan is a deed state; the FGU takes title and any post-judgment taxes are the new owner’s responsibility after sale.

2. Right of Redemption → see right-of-redemption

• Pre-judgment / pre-sale right: YES. Forfeited property may be redeemed by paying the delinquent taxes, interest, penalties, and fees on or before the March 31 immediately succeeding the entry of the judgment of foreclosure under MCL 211.78k (or within 21 days of judgment in a contested case). MCL 211.78g. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78g
• Post-sale period (tax): NONE. The judgment of foreclosure is final after March 31; title vests absolutely in the FGU and is not subject to redemption after that date (MCL 211.78k(6)). There is no post-auction redemption for tax deeds — the former owner’s only remaining remedy is the surplus / remaining proceeds claim under MCL 211.78t (see Module 3).
• Who may redeem (pre-cutoff): the owner or any person with a legal interest (e.g., land-contract vendee, mortgagee, lienholder) by paying the redemption amount (MCL 211.78g).
• Amount formula: delinquent taxes + 1/2%/month additional interest + penalties
  • $175 forfeiture fee + recording/other statutory fees (MCL 211.78g).
• Premium to certificate holder: N/A (deed state; no certificates).
• Extinguishment: failure to redeem by March 31 → judgment becomes final; absolute fee-simple title vests in the FGU and all prior interests are extinguished (MCL 211.78k(5)–(6)).
• Special tolling: see needs_verification (minors/incompetents/SCRA effect on the GPTA redemption cutoff not separately confirmed against a primary source).

3. Surplus / Excess Proceeds → see surplus-funds, third-party-recovery-rules

• Belongs to: former owner / priority_waterfall. Per Rafaeli, surplus beyond taxes, interest, penalties, and fees is the former interest-holder’s property; MCL 211.78t allocates “remaining proceeds” by relative priority of claimants’ pre-foreclosure interests. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78t
• “Remaining proceeds” defined: sale price minus (minimum bid + FGU expenses not in the minimum bid + a statutory sale commission) (MCL 211.78t).
• Claim waterfall: the circuit court determines the relative priority and value of each claimant’s interest in the property immediately before foreclosure, and allocates remaining proceeds accordingly, without unjustly enriching a claimant at the public’s expense (MCL 211.78t(9)).
• Filing venue: the circuit court in the same in-rem proceeding in which the judgment of foreclosure was entered under MCL 211.78k (motion practice).
• Claim deadline — TWO firm steps (MCL 211.78t):
  1. Notice of Intention to Claim Interest (Michigan Treasury Form 5743), signed and notarized, delivered to the FGU by July 1 immediately following the effective date of the foreclosure (MCL 211.78t(2)).
  2. Motion in the foreclosure proceeding filed during the window beginning February 1 immediately succeeding the sale/transfer under MCL 211.78m and ending the following May 15 (MCL 211.78t(4)). This Feb 1–May 15 window is the currently-effective deadline (verified 2026-06-01 against the statute text and enforced in barry-county-treasurer-foreclosure-2024; older secondary sources citing an “October 1” date are stale). Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78t Missing either deadline precludes recovery (MCL 211.78t(2),(4)).
• Escheat / forfeiture of claim: if no Notice of Intention is timely filed, the former owner forfeits any claim to remaining proceeds and the FGU retains them. (No separate escheat-to-unclaimed-property step; the failure-to-file is itself the bar — see needs_verification for confirmation of where unclaimed remaining proceeds ultimately go.)
• Documentation required: notarized Form 5743 Notice of Intention; then a motion with proof of the pre-foreclosure legal interest and its value/priority (MCL 211.78t).
• Exclusive mechanism: MCL 211.78t is “the exclusive mechanism for a claimant to claim and receive any applicable remaining proceeds under the laws of this state” (MCL 211.78t(11)).
• Third-party recovery (recovery agents):
  • fee_cap_pct: none specifically set within MCL 211.78t for tax-foreclosure remaining proceeds — see needs_verification. (Michigan’s general unclaimed-property “finder” cap of 10% under the Uniform Unclaimed Property Act, MCL 567.265, does not by its terms govern the 78t court process.)
  • licensing_required: see needs_verification.
  • assignment_of_claim_allowed: the 78t process turns on a claimant’s legal interest immediately before foreclosure; whether a post-foreclosure assignee of that interest qualifies as a “claimant” is contested — see needs_verification.
  • cooling_off_period / contract_disclosure_rules / prohibited_practices: not found in a 78t-specific primary source — see needs_verification.
  • citation: MCL 211.78t (https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78t)
• Notice to former owner required: YES — the FGU must notify former owners of the remaining-proceeds claim process (the 78t scheme is built on a Notice-of-Intention regime predicated on owners being informed); confirm the precise notice subsection in needs_verification.

▸ For Investors / Operators — Michigan is a tax-deed state: the FGU takes fee-simple title by in-rem judgment (MCL 211.78k) and sells at public auction with no post-sale redemption for tax deeds (title vests absolutely at the March 31 cutoff). Before committing capital, note that a layered right of first refusal (State → local unit → county) can pull a parcel before the auction (MCL 211.78m(1)), weigh the path to marketable title (§5b — quiet title is commonly required despite MCL 211.78k(6) finality, with the MCL 211.79a expedited route for abandoned property and the 40-year MRTA), and identify which interests survive (§7b — the Part 201 environmental super-lien (MCL 324.20138) survives by the MCL 211.78k(5)(c) carve-out, HOA assessment liens are extinguished but the covenant duty continues, and the IRS § 7425 120-day redemption persists).

▸ For Former Owners — When a Michigan tax-foreclosure auction sells for more than the taxes, interest, penalties, and fees, the remaining proceeds belong to the former interest-holder under rafaeli-v-oakland-county-2020 and MCL 211.78t — the exclusive claim mechanism. Two firm deadlines apply: a notarized Notice of Intention (Form 5743) delivered to the FGU by July 1 following the foreclosure, then a motion filed in the foreclosure proceeding during the February 1–May 15 window after the sale. Missing either deadline precludes recovery. The claim is not transferable except by testate or intestate succession (MCL 211.78t(3)).

4. Mortgage Foreclosure

• Process: both, with foreclosure by advertisement (non-judicial, MCL 600.3201–600.3285) the standard route; judicial foreclosure also available. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-600-3204
• Conditions to foreclose by advertisement (MCL 600.3204): default; no pending suit on the debt; mortgage (and assignments) recorded; record chain of title to the foreclosing party before sale.
• Timeline (approx.): notice of sale published once a week for 4 successive weeks and posted on the property; sale by the sheriff (MCL 600.3208, 600.3212). Specific day-counts confirmed: 4-week publication; redemption runs from sale.
• Reinstatement right: Michigan provides a pre-sale notice/counseling and loan-modification conference regime for residential mortgages (MCL 600.3205a et seq.) — see needs_verification for exact current reinstatement mechanics.
• Redemption after sale (MCL 600.3240):
  • Residential ≤4 units, debt >66⅔% of original: 6 months from sale.
  • Residential where debt ≤66⅔% of original: 1 year from sale.
  • Commercial/industrial/multifamily >4 units: 6 months.
  • Agricultural: 1 year.
  • Abandoned property: 1 month / 30 days (shortened, MCL 600.3240(9)–(10), 600.3241/3241a).
  • Amount: the bid for the premises + interest at the mortgage rate from sale + sheriff’s fee + a $5 register-of-deeds fee + statutory add-ons (taxes, senior-lien redemptions, insurance) (MCL 600.3240(2),(4)). Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-3240
• Deficiency judgment: allowed, with a fair-value defense/offset (MCL 600.3280): in a deficiency action where the mortgagee bought at the sale, the defendant may show the property was “fairly worth the amount of the debt” or that the bid was “substantially less than its true value,” offsetting the deficiency up to the amount of the plaintiff’s claim. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-3280
• Surplus distribution (MCL 600.3252): surplus after the sale and costs is paid to subsequent mortgagees/lienholders by priority, then to the mortgagor, the mortgagor’s representatives, or assigns; junior claimants may file to claim. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-3252
• Sale officer: sheriff (foreclosure by advertisement).

5. Sale Procedure Playbooks

• Treasurer / FGU tax sale — ordered steps → see treasurer-sale
  1. Taxes returned delinquent March 1 of year +1 (after the prior tax year).
  2. Forfeiture to county treasurer the following March 1 (one year later); $175 fee + 1/2%/month interest added (MCL 211.78g).
  3. FGU petitions circuit court; in-rem judgment of foreclosure entered (~late Feb/March of year +3) (MCL 211.78h, 211.78k).
  4. Redemption cutoff: March 31 after judgment (21 days if contested) (MCL 211.78g/k).
  5. Absolute fee-simple title vests in the FGU; prior interests extinguished (MCL 211.78k(5)–(6)).
  6. Right of first refusal window (State → local unit → county), through ~first Tuesday in July (MCL 211.78m(1)).
  7. Public auction, third Tuesday in July through before first Tuesday in November; sale to highest bidder ≥ minimum bid; fee-simple deed issued (MCL 211.78m(2)).
  8. Former interest-holders pursue remaining proceeds via MCL 211.78t.
• Sheriff sale (mortgage) — ordered steps → see sheriff-sale
  1. Default + power-of-sale; verify MCL 600.3204 conditions.
  2. Publish notice once/week for 4 successive weeks + post on property (MCL 600.3208, 600.3212).
  3. Sheriff’s sale at public venue to highest bidder; sheriff’s deed delivered.
  4. Redemption period runs from sale date (6 months typical residential; 1 yr agricultural; shortened if abandoned) (MCL 600.3240).
  5. Surplus distributed per MCL 600.3252; deficiency action with fair-value defense per MCL 600.3280.
• Notice requirements:
  • Tax: published notice ≥30 days before the sale of the time/location (MCL 211.78m(2)); statutory mailed/posted/visited notice of the foreclosure proceedings (MCL 211.78i) with constitutional follow-up duty per Sidun.
  • Mortgage: 4 successive weekly publications + posting (MCL 600.3208, 600.3212). Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78m
• Upset bid / confirmation: none (no upset-bid or judicial-confirmation step for either tax auctions or foreclosure-by-advertisement sheriff sales). Finality comes from the March 31 cutoff (tax) or expiry of the redemption period (mortgage).
• Payment terms: tax-sale.info auctions require deposit/registration and prompt payment of the balance (county/vendor-specific). Confirm per county.
• Deed issued: tax sale → fee-simple deed from the FGU (no warranty of title beyond the statutory conveyance), vesting “fee simple title” (MCL 211.78m(2)); mortgage → sheriff’s deed, becoming absolute on expiry of redemption.

6. Due Process & Notice → see due-process-notice

• Standard: notice “reasonably calculated, under all the circumstances,” to apprise interested parties — Mullane, applied to GPTA tax foreclosure; when a mailed notice is returned undelivered, the State must take additional reasonable steps (jones-v-flowers), as Michigan applied in sidun-v-wayne-county-treasurer-2008.
• Required attempts (GPTA, MCL 211.78i): title search to identify owners/interest holders; certified mail; publication; personal visit/posting on occupied property; plus reasonable follow-up if mail is returned (constitutional overlay from Sidun).
• Consequence of defective notice: voidable — defective notice can support setting aside the foreclosure judgment as to the affected party (per Sidun remand for further proceedings); after the March 31 finality date the statute sharply limits collateral attack, so timing and the constitutional notice defect matter.
• Leading cases: sidun-v-wayne-county-treasurer-2008, jones-v-flowers, mennonite-v-adams, rafaeli-v-oakland-county-2020.

7. Title & Marketability

• Deed warranty level: statutory conveyance vesting fee-simple (no general warranty); effectively a tax/quitclaim-type title for marketability purposes.
• Marketable immediately? Often not without curative work — title insurers typically require time and/or a quiet-title action before insuring a tax-deed title; see needs_verification for a primary citation on insurer practice.
• Quiet title required? Commonly recommended/needed to obtain insurable, marketable title after a tax-deed purchase (practice norm; not a statutory mandate) — see needs_verification.
• SOL to challenge the deed: the GPTA makes the foreclosure judgment final after the March 31 cutoff and limits modification/invalidation (MCL 211.78k(6)); narrow exceptions exist (e.g., constitutional notice failures). Precise limitation period for collateral attack → see needs_verification.
• Title insurance availability: generally available after curative steps/quiet title; see needs_verification.
• Common defects: notice defects (Sidun-type), unextinguished federal interests (IRS 120-day redemption), bankruptcy-stay violations, heirs/estate interests, surplus-claimant disputes.

8. Case Law (real, verified)

(Sale-procedure topic is also covered by the MCL 211.78m / 600.3252 statutory analysis above. Note the division of labor between the two surplus cases: barry-county-treasurer-foreclosure-2024 holds 78t is the exclusive, facially constitutional remedy when a sale generates remaining proceeds, while jackson-v-southfield-2025 holds that when there is no public auction (a right-of-first-refusal/minimum-bid transfer), 78t does not govern and the former owner pursues the retained equity through inverse-condemnation / Rafaeli takings.)

9. Edge Cases (state-specific notes)

• bankruptcy-automatic-stay — A Chapter 13 filing before the March 31 redemption cutoff can preserve the right to cure delinquent property taxes through a plan; a petition filed after title vests in the FGU generally cannot undo the completed foreclosure. (Confirm controlling authority — see needs_verification.)
• federal-tax-lien-redemption — The IRS retains a 120-day right of redemption (26 USC 7425) after a sale that discharges a junior federal tax lien; purchasers of Michigan tax deeds and sheriff’s deeds take subject to that federal window.
• heirs-property — Estate/heir interests are recurring 78t surplus-claim disputes; heirs of a deceased former owner asserting “remaining proceeds” must establish a qualifying legal interest immediately before foreclosure (litigated under 78t).
• manufactured-homes — Treatment depends on whether the home is affixed/taxed as realty vs. titled as personalty — see needs_verification.
• scra-protections — Servicemembers Civil Relief Act may toll/limit mortgage foreclosure and affect redemption; interaction with the GPTA March 31 cutoff not separately confirmed — see needs_verification.
• void-vs-voidable — Notice-defective GPTA foreclosures are treated as voidable and attackable on due-process grounds (Sidun); the statute otherwise enforces strict finality after March 31.

10. Operations

• Where records live: county Register of Deeds (deeds, mortgages, sheriff’s deeds); county Treasurer (delinquent tax, forfeiture, foreclosure, surplus claims); circuit court (in-rem judgment + 78t motions).
• Public access URLs:
  • State forfeiture/foreclosure hub: https://www.michigan.gov/taxes/property/forfeiture-foreclosure/taxpayer-resources
  • State auctions hub: https://www.michigan.gov/taxes/property/forfeiture-foreclosure/county/auctions
  • Auction platform: https://www.tax-sale.info
  • GPTA statutes: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78
• Typical costs/timelines: delinquency → forfeiture (1 yr) → judgment (~2 yrs from delinquency) → March 31 redemption cutoff → summer/fall auction. Forfeiture adds $175 + 1/2%/month interest (MCL 211.78g).
• Key agencies: Michigan Dept. of Treasury (State as FGU for many counties); county treasurers; Michigan DNR (manages certain State-foreclosed parcels); county circuit courts.
• Useful forms: Treasury Form 5743 — Notice of Intention to Claim Interest in Foreclosure Sale Proceeds (the gateway 78t filing).

2b. Redemption Advanced

Assignability of Redemption Right

Tax foreclosure (GPTA): The GPTA pre-judgment redemption right is a statutory right running to “a person with a legal interest in the property” (MCL 211.78g). The statute does not expressly authorize or prohibit assignment to a third party who lacked a pre-foreclosure legal interest. A third-party assignee who acquires no underlying property interest likely cannot independently exercise the statutory redemption right, because MCL 211.78k(5) extinguishes “all existing recorded and unrecorded interests” at the March 31 cutoff — a bare contractual assignment of the right to redeem from a person who held no property interest is not a substitute for having a “legal interest in the property” (MCL 211.78g). No primary Michigan case was found confirming or denying pure redemption-right assignment to an uninterested third party — needs_verification.

Mortgage foreclosure (MCL 600.3240): The mortgagor, heirs, personal representatives, or assigns may redeem by paying the requisite amount “to the purchaser, the purchaser’s personal representative or assigns, or to the register of deeds” (MCL 600.3240(1)). The statute’s reference to “assigns” on the payment-recipient side, and the corresponding right to redeem that runs to the mortgagor’s “assigns,” indicates that the mortgage-foreclosure redemption right is assignable by the mortgagor to a third party who steps into the mortgagor’s shoes. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-3240

Equitable Redemption

Michigan’s GPTA creates a purely statutory redemption scheme; no separate equitable redemption doctrine applies once the statutory cutoff (March 31) has passed. Before the March 31 cutoff (i.e., before the judgment becomes final), a party with an interest may raise equitable arguments in the circuit court proceeding, but the operative right is the statutory right, not an independent equitable one. After March 31 finality, equitable relief from the judgment requires demonstrating a constitutional deprivation (e.g., notice defect under sidun-v-wayne-county-treasurer-2008), not a separate equitable redemption doctrine. Equitable redemption is not available post-sale as a distinct remedy in Michigan tax foreclosure — needs_verification for any controlling authority expressly distinguishing equitable from statutory redemption in this context.

For mortgage foreclosure by advertisement, the statutory redemption periods (MCL 600.3240) are similarly exclusive; no separate equitable redemption after the sheriff’s sale exists outside the statutory window.

Installment Redemption

Not available under either GPTA or foreclosure by advertisement. The redemption amount must be paid in full. (Exception: tax foreclosure avoidance agreements under MCL 211.78g may allow installment arrangements before forfeiture — see needs_verification.)

Assignment of Tax Certificate / Deed Mid-Period

Michigan is a deed state; there are no tax-lien certificates to assign. After the FGU obtains fee-simple title at judgment and sells at the public auction (MCL 211.78m), the purchaser receives a fee-simple deed. That deed is assignable (transferable) like any fee-simple title — the new owner can convey the property during the period when the former owner might still be pursuing a 78t remaining-proceeds claim, but the 78t claim runs against the FGU/sale proceeds, not against the purchaser’s title.

For mortgage foreclosure, the sheriff’s deed is recorded and becomes an interest that the purchaser may convey; the purchaser’s interest is subject to the mortgagor’s redemption right (MCL 600.3240), but the deed/interest itself is transferable. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78m

3b. Surplus Advanced

Claim Assignability

Full assignment prohibited (tax foreclosure remaining proceeds): MCL 211.78t(3) explicitly states: “A right to claim remaining proceeds under this section is not transferable except by testate or intestate succession.” A former owner cannot sell the remaining-proceeds claim outright to a third party. Only an heir or devisee who succeeds to the former owner’s interest through a will or intestate succession may succeed to the claim.

Practical implication for recovery agents: A third-party recovery agent cannot take a full assignment of the claim; the agent can only act as the former owner’s agent or attorney under a contingency-fee or legal-services agreement. The agent’s fees must come from the claimant’s proceeds, but the claimant (or their testate/intestate successor) must be the party of record. Whether MCL 211.78t(3) also limits the percentage a recovery agent may charge is not addressed in the statute — needs_verification (the general UUPA 10% finder cap under MCL 567.265 likely does not govern the 78t court process). Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78t

Mortgage foreclosure surplus (MCL 600.3252): The statute allows junior lienholders and the mortgagor and “assigns” to claim surplus; no explicit prohibition on assignment of the surplus claim is contained in MCL 600.3252 — the assignability restriction is unique to the GPTA 78t process. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-3252

Statute of Limitations on Surplus Claims

Tax foreclosure (MCL 211.78t): There is a two-deadline statutory process rather than a traditional limitations period:

1. Notice of Intention to Claim Interest (Form 5743), notarized, delivered to the FGU by July 1 immediately following the effective date of the foreclosure (MCL 211.78t(2)). Trigger: the foreclosure effective date.
2. Motion in the circuit court proceeding during February 1–May 15 immediately succeeding the sale/transfer under MCL 211.78m (MCL 211.78t(4)). Trigger: date of sale/transfer.

Missing either deadline bars recovery entirely (MCL 211.78t(2),(4)). These are statutory claim-filing deadlines, not traditional limitations periods — the result of missing them is claim forfeiture, not merely a defense. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78t

Mortgage foreclosure surplus (MCL 600.3252): No separate statute of limitations confirmed in a primary source for mortgage surplus claims under MCL 600.3252 — needs_verification. The general 6-year contract/written-instrument limitation (MCL 600.5807) may apply as a backstop.

Competing Claimant Procedure

The circuit court (same in-rem proceeding) determines “the relative priority and value of the interest of each claimant” (MCL 211.78t(9)). The claimant bears the burden of proving their interest. The court allocates remaining proceeds according to priority without unjustly enriching any claimant at the public’s expense. No explicit first-to-file race is created; priority is determined by the pre-foreclosure legal priority of interests. Interpleader is not mentioned in the statute, but the motion practice in the circuit court effectively functions as a multi-claimant adjudication. Claimants are required to disclose other known interest holders (MCL 211.78t(5)). Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78t

Deceased Owner Procedure

MCL 211.78t(3) permits the claim to pass only “by testate or intestate succession.” An heir or devisee who inherits the former owner’s interest has standing as a claimant. The statute does not expressly require probate court action as a prerequisite to filing the 78t claim, but in practice, a personal representative of the estate would file the Notice of Intention (Form 5743) and the motion, using court-issued letters testamentary or letters of administration to establish authority. Whether a direct heir claiming through intestate succession must first open a probate estate or may file the 78t claim directly (showing descent without formal letters) is needs_verification against a primary Michigan case or court practice note.

Fraudulent Conveyance Exposure

Because the remaining-proceeds claim is non-transferable except by succession (MCL 211.78t(3)), a purported assignment of the claim to a third party is void under the statute, not merely voidable. The fraudulent conveyance framework (Michigan’s Uniform Voidable Transactions Act, MCL 566.31 et seq.) would apply to other types of transfers of property or proceeds — e.g., if the former owner, after receiving remaining proceeds, transferred them to a third party to defraud creditors. No 78t-specific fraudulent conveyance case law was identified — needs_verification. Michigan’s UVTA: MCL 566.31 et seq. (enacted 2016, effective 2017).

Surplus Claimant Notice

The FGU must send notice of the remaining-proceeds claim process to former interest holders as part of the foreclosure/sale notification scheme; the exact subsection and timing of that required notice is needs_verification (the 78t scheme is built on claimants receiving notice through the foreclosure proceeding, but the specific notice-of-right-to-claim provision needs verification against a primary text).

5b. Title Advanced

Quiet Title

When required: Not expressly mandated by statute for tax deed purchasers at the MCL 211.78m auction, but commonly required as a practical matter because title insurers frequently require evidence that the GPTA foreclosure process was constitutionally adequate (adequate notice to all parties) before insuring — particularly in light of sidun-v-wayne-county-treasurer-2008. The GPTA itself provides that the foreclosure judgment is final after March 31 (MCL 211.78k(6)), but this statutory finality does not eliminate the risk of notice-defect attacks or federal claims, which title insurers must evaluate. For abandoned-property tax deeds under the older deed-of-state process, MCL 211.79a provides an expedited quiet title procedure in circuit court.

Action type: Judicial — quiet title actions in Michigan are brought in the circuit court of the county where the property is located (MCR 3.411 / MCL 600.2932; MCL 211.79a for the abandoned-property expedited procedure). Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-79a

Court with jurisdiction: Circuit court of the county where the property is located.

Typical timeline: Uncontested quiet title: 90–120 days; if publication service required, add 6–8 weeks. Contested: 6–12+ months. Source (secondary, retrieved 2026-06-02): https://liensuite.com/quiet-title/michigan

Typical cost range: Uncontested: approximately $2,500–$6,000 (attorney fees $2,000–$5,000 + court filing fees $175–$250 + service/publication costs). Contested: may exceed $10,000–$15,000. Wayne County Land Bank offers expedited quiet title at $1,500/parcel.

Cures all pre-sale defects? A quiet title judgment under MCL 600.2932 binds all persons served or who appear; it does not automatically extinguish federal liens that were not discharged by the sale (e.g., IRS liens where proper 25-day notice was not given), or survive CERCLA/environmental liens preserved under MCL 211.78k(5)(c).

Deed seasoning: Title insurers commonly decline to insure immediately following a GPTA tax-deed purchase; typical seasoning expectation is 1–3 years, or a successful quiet title action, before standard title insurance is issued. Exact insurer requirements vary — needs_verification against a primary insurer underwriting guideline.

Judicial confirmation before deed issues: Not required. The fee-simple deed is issued by the FGU directly upon sale (MCL 211.78m(2)); there is no separate judicial confirmation step for GPTA auction sales. For sheriff’s deeds (mortgage foreclosure by advertisement), the deed is recorded and becomes absolute upon expiration of the redemption period — also no separate judicial confirmation.

Marketable Title Act

Michigan has the Marketable Record Title Act (MRTA), 1945 PA 200, MCL 565.101 et seq. The MRTA extinguishes interests, claims, and charges that depend on events occurring more than 40 years before the root of title for non-mineral interests (20 years for mineral rights), unless a notice of claim is filed to preserve the interest. Note: the deadline for preserving older interests has been extended to September 29, 2027. The MRTA can help clear stale pre-foreclosure title claims, but its interaction with tax-deed titles (which reset the chain of title via judgment) is not separately confirmed in a primary case — needs_verification. Source: https://www.kuhnrogers.com/michigans-marketable-record-title-act-recording-requirements-and-extinguishment-of-old-interests/ Statute: MCL 565.101 et seq.

5c. TRO & Injunctive Relief

Recognized Grounds

The following grounds are recognized as supporting injunctive relief against a Michigan foreclosure (tax or mortgage):

• Constitutional notice defect — failure to provide notice “reasonably calculated” to apprise interested parties (sidun-v-wayne-county-treasurer-2008, jones-v-flowers); applies to GPTA tax foreclosures (MCL 211.78k grounds for objection) and non-judicial foreclosure by advertisement.
• Illegal/erroneous tax or assessment — tax not authorized by law; official acted without jurisdiction; property was exempt; tax fraudulently assessed; property description void (MCL 211.78k(2)).
• Payment dispute — taxes were timely paid; litigant can establish the forfeiture/ foreclosure was improper because the tax was satisfied.
• Bankruptcy automatic stay — a petition filed before the March 31 GPTA cutoff or before a sheriff’s sale triggers the automatic stay (11 U.S.C. § 362), halting the proceeding; see bankruptcy-automatic-stay.
• SCRA protection — mortgage foreclosure by advertisement may be halted for servicemembers (50 U.S.C. § 3953); interaction with GPTA March 31 cutoff is needs_verification.
• Homestead / constitutional protections — grounds asserting the foreclosure violates the Michigan or U.S. Constitution (e.g., takings claims post-Rafaeli, though the 78t remedy is now the primary path for surplus).

Legal Standard

Michigan courts apply the 4-factor preliminary injunction test under MCR 3.310:

1. Likelihood of success on the merits
2. Danger of irreparable harm if injunction denied
3. Balance of harms (harm to moving party without injunction vs. harm to opposing party with injunction)
4. Harm to public interest if injunction granted

A TRO (short-term, typically up to 14 days under MCR 3.310) may be granted ex parte in urgent circumstances; a preliminary injunction requires notice and hearing. These factors are guidelines, not rigid requirements — equitable discretion governs. Source: https://www.plunkettcooney.com/dontbetthebusinessblog/understanding-preliminary-injunctions

Court with Jurisdiction

Tax foreclosure: The circuit court that entered the in-rem judgment of foreclosure (MCL 211.78k); objections must be filed with the circuit court before the hearing (MCL 211.78k(2)–(3)). Emergency relief sought after the hearing must still be filed in that circuit court; after March 31 finality, the statute sharply limits modification.

Mortgage foreclosure by advertisement: Circuit court of the county where the property is located; there is no pre-sale judicial proceeding to object in, so a borrower must file an independent lawsuit for injunctive relief before the sheriff’s sale occurs.

Bond Required

Yes, under MCR 3.310(D), the court may require the applicant to post security in an amount the court deems proper to protect the enjoined party from damages if the injunction is later found wrongly granted. Bond amounts vary with the potential harm; some courts have allowed reduced bonds or bond-by-payment-schedule in residential foreclosure contexts.

Emergency Timeline

A TRO can be obtained within 24–48 hours if properly filed with supporting declarations and the court is available for an emergency hearing. Preliminary injunction hearings typically occur within 7–14 days. Given the GPTA’s firm March 31 statutory cutoff, any attempt to enjoin a GPTA foreclosure judgment must be filed and heard before that date to have effect.

Effect on Completed Sale

Tax foreclosure: After the March 31 finality date, MCL 211.78k(5) states the judgment “must not be modified, stayed, or held invalid” except for the narrow appeals and certificate-of-error provisions. A sale that completes after March 31 without a prior TRO effectively strips the court of routine modification power; the former owner’s primary remedy post-sale is a constitutional inverse-condemnation/takings claim (rafaeli-v-oakland-county-2020) or a notice-defect constitutional challenge (sidun-v-wayne-county-treasurer-2008) — but those challenges do not automatically void the completed sale and may only sound in damages or require a new proceeding.

Mortgage foreclosure by advertisement: A sheriff’s sale completed before a TRO issues is generally not automatically void; the court retains discretion to grant post-sale relief where the sale was conducted improperly (e.g., where proper notice was never given), but the mortgagee and any bona fide purchaser’s interests weigh heavily in the balance. Injunctive relief obtained before the sale avoids the difficulty of unwinding a completed sale.

Non-Judicial (Foreclosure by Advertisement) Notes

Foreclosure by advertisement has no judicial proceeding in which to file objections pre-sale; the mortgagor must proactively file an independent lawsuit for injunctive relief in circuit court. This creates urgency — the 4-week publication period is the practical window to identify the scheduled sale date and file for relief.

Leading Cases

sidun-v-wayne-county-treasurer-2008, rafaeli-v-oakland-county-2020, jones-v-flowers

7b. Lien Survival & Purchaser Exposure

IRS 120-Day Redemption (26 U.S.C. § 7425)

Applies: YES, to both Michigan GPTA tax deeds and sheriff’s deeds from mortgage foreclosure by advertisement, where a federal tax lien was of record.

Under 26 U.S.C. § 7425(b) and (d):

• For non-judicial sales (including GPTA auctions and foreclosure by advertisement), the foreclosing entity must provide the IRS with written notice at least 25 days before the sale if a federal tax lien is recorded (26 U.S.C. § 7425(c)(1)).
• After a qualifying non-judicial sale, the IRS has the right to redeem within 120 days from the date of sale, or the period allowable for redemption under local law, whichever is longer (26 U.S.C. § 7425(d)(1)).
• Michigan GPTA tax sales have no post-sale owner redemption period (title vests absolutely at the March 31 cutoff). For sheriff’s deed sales, the state redemption period is typically 6 months or 1 year, which exceeds 120 days — so the state redemption period controls for mortgage foreclosure, and for GPTA tax sales the 120-day federal window is the controlling redemption opportunity for the IRS.
• A purchaser of a Michigan tax deed or sheriff’s deed where a federal tax lien existed takes subject to the IRS’s 120-day redemption right if proper 25-day notice was not given. Source: https://www.law.cornell.edu/uscode/text/26/7425

HOA / Condominium Super-Priority

For condominiums (MCL 559.208): Condominium association assessment liens have priority over most encumbrances but are junior to: (1) property tax liens of state/federal taxing authorities, and (2) a first mortgage of record that was recorded before the association’s notice of lien. However, there is a limited super-priority provision: past-due assessments evidenced by a notice of lien recorded before a mortgage was recorded take priority over that mortgage (MCL 559.208(1)).

Michigan does not have a broad HOA super-lien statute (like Nevada’s) that gives assessments blanket priority over first mortgages. The condo assessment lien priority is recording-date-based, not a categorical super-priority. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-559-208

Survives tax sale? The GPTA judgment extinguishes “all liens against the property” including assessment liens (MCL 211.78k(5)(c)), subject to the NRPA exception. An HOA lien for unpaid assessments is extinguished by the GPTA foreclosure. However, the obligation to pay future assessments (grounded in recorded restrictive covenants) survives the tax sale and binds the new owner — the lien is gone but the covenant duty continues. A 2025 Michigan Court of Appeals decision confirmed that restrictive covenants requiring assessment payments do not constitute “encumbrances” extinguished by MCL 211.67/211.78k, so the new owner must pay ongoing HOA assessments. Source (secondary, retrieved 2026-06-02): https://micondolaw.com/2025/03/20/michigan-court-confirms-tax-foreclosure-sale-does-not-eliminate-obligation-to-pay-hoa-assessments/ Primary statute: MCL 211.78k(5)(c); MCL 559.208.

Survives mortgage foreclosure? For foreclosure by advertisement, the sheriff’s sale extinguishes junior lienholders who were properly noticed; HOA assessment liens junior to the foreclosing first mortgage are extinguished. Ongoing assessment obligations under recorded covenants survive.

CERCLA / Environmental Liens

Federal CERCLA lien (42 U.S.C. § 9607(l)): A federal CERCLA lien arises in favor of the United States upon property where a federal cleanup response is performed. It has priority over all liens except those perfected under state law prior to the filing of a federal Notice of Lien. A CERCLA lien filed before the GPTA foreclosure judgment could survive the sale by virtue of federal supremacy — needs_verification against a Michigan-specific primary authority on whether the federal government’s CERCLA lien is among the narrow exceptions to MCL 211.78k(5)(c)‘s extinguishment provision.

Michigan state superfund / Part 201 “super-lien” (MCL 324.20138): Michigan has an environmental super-lien statute. Under MCL 324.20138:

• A standard environmental lien arises in favor of the State for cleanup costs and has priority over all other liens except those recorded before the state’s lien is recorded.
• The Attorney General may petition the circuit court for an enhanced “super-lien” with priority over all other liens “that are or have been recorded on the facility,” removing the earlier-recorded exception.
• Where state response activity increases property value, a value-increase lien with super-priority over all recorded liens attaches.

Interaction with tax sale: MCL 211.78k(5)(c) expressly preserves “liens recorded by the state or the foreclosing governmental unit under the Natural Resources and Environmental Protection Act [MCL 324.101 et seq.].” State NRPA/Part 201 environmental liens therefore survive the GPTA tax sale by statutory carve-out. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78k Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-324-20138

Municipal Code / Blight Liens

Under MCL 211.78k(5)(c), the GPTA foreclosure judgment extinguishes “all liens against the property, including any lien for unpaid taxes or special assessments,” with exceptions for (a) future installments of special assessments, (b) NRPA liens (above), and (c) visible or recorded easements and rights-of-way. Municipal code violation fines, demolition liens, and blight liens recorded as encumbrances on the property title are extinguished by the GPTA foreclosure judgment (they fall within “all liens”) unless they qualify as NRPA environmental liens. The abandoned-property statute MCL 211.79a confirms that “all delinquent property taxes, demolition liens, and all other municipal liens of any kind (except future installments of special assessments) are extinguished” at judgment. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78k

Note on moral/covenant obligations: As with HOA assessments, a municipality may argue that a blight ordinance obligation running with the land survives even if the recorded lien is extinguished — needs_verification against a primary Michigan enforcement case.

Mechanic Liens

Mechanic liens recorded before the GPTA foreclosure judgment are also extinguished as part of “all liens” under MCL 211.78k(5)(c). For mortgage foreclosure by advertisement, mechanic liens recorded before the mortgage being foreclosed may have priority over the mortgage lien; mechanic liens are searchable in the register-of-deeds records before a sheriff’s sale. needs_verification for a primary Michigan case specifically addressing mechanic lien survival post-GPTA tax sale (given the broad statutory extinguishment language, most practitioners treat them as extinguished).

Junior Mortgage Exposure

For mortgage foreclosure by advertisement, the foreclosing party’s senior mortgage extinguishes junior mortgages and liens where proper notice was given; the purchaser at the sheriff’s sale takes title free of those junior liens. However, the purchaser takes subject to any senior lien (one recorded before the foreclosing mortgage); unredeemed senior liens remain against the property.

For GPTA tax sales, all pre-existing mortgage liens are extinguished by the judgment (MCL 211.78k(5)(c)), so a tax-deed purchaser takes free of prior mortgages. The IRS redemption right (above) and NRPA environmental liens are the principal surviving interests.

Due Diligence Checklist (Michigan tax-deed / sheriff’s-deed purchase)

1. IRS lien search (USDC filing / IRS lien index) — confirm 25-day notice was given and assess 120-day IRS redemption exposure.
2. State environmental lien search — EGLE / NRPA Part 201 liens recorded with Register of Deeds; these survive GPTA sales.
3. HOA / condo assessment status — lien may be extinguished but ongoing covenant obligation survives; obtain ledger of future assessments.
4. CERCLA site search (EPA CERCLIS / Superfund database) — federal cleanup liens.
5. UCC search (for personal property fixtures) — Register of Deeds / Secretary of State.
6. Bankruptcy search — verify no automatic stay in effect.
7. SCRA search — verify property owner is not on active military service.
8. Title search back to GPTA judgment for any post-judgment encumbrances (post-sale tax-deed period).
9. Municipal code / blight status check with local municipality — even if liens are extinguished, active code-violation orders may bind new owners.

10b. Purchaser Obligations During Redemption

(Applies primarily to mortgage foreclosure by advertisement; GPTA tax sales have no post-sale redemption period.)

Must Pay Subsequent Taxes?

Not mandatory, but recoverable if paid. MCL 600.3240(3) provides that if the sheriff’s-deed purchaser (or their heirs, personal representatives, or assigns) pays property taxes assessed against the property during the redemption period, those amounts become part of the redemption amount — the mortgagor can redeem only by paying the original bid plus those taxes (with interest). Payment is therefore voluntary; paying prevents tax delinquency from creating a separate encumbrance, and the amount is recovered through the redemption figure. Condominium assessments, HOA assessments, and insurance premiums similarly paid by the purchaser are also added to the redemption amount. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-3240

Must Notify Owner of Redemption Expiration?

Partial yes. MCL 600.3237 requires the purchaser who intends to conduct interior inspections (a right under MCL 600.3238) to provide the mortgagor with written notice that includes “the estimated date the redemption period expires.” This disclosure is triggered by the purchaser’s inspection intent, not as a standalone warning. There is no separate statutory provision requiring the purchaser to send a stand-alone notice to the mortgagor warning of impending redemption expiration — needs_verification against any court rule or local court requirement that may impose such a duty.

Form: Written notice by certified mail, physical posting on the property, or any manner reasonably calculated to achieve actual notice (MCL 600.3237).

Consequence of failure to give inspection/notice: If the purchaser does not give proper notice before inspecting, any eviction proceedings predicated on that inspection may be defective. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-3237

Owner’s Right to Remain in Possession

YES. During the redemption period, the mortgagor (former owner) has the right to remain in possession of the property. The purchaser cannot remove the mortgagor simply by receiving the sheriff’s deed. The purchaser may inspect the interior (with 72-hour notice, MCL 600.3238) but may not demand possession during the redemption period unless:

• The mortgagor unreasonably refuses an inspection; or
• Damage to the property is imminent or has occurred;

In those circumstances, the purchaser may immediately commence summary possession proceedings (Chapter 57), and if judgment for possession is entered, the redemption right is extinguished and title vests absolutely in the purchaser (MCL 600.3238(6)). Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-3238

Costs Collectible Upon Redemption

If the mortgagor elects to redeem, they must pay (MCL 600.3240(2)–(3)):

• The bid amount at the sheriff’s sale
• Interest at the mortgage rate from the sale date to the redemption date
• The sheriff’s fee and a $5 register-of-deeds fee
• Any subsequent property taxes paid by the purchaser (with interest)
• Amounts paid to redeem senior liens from foreclosure
• Condominium/HOA assessments paid by the purchaser
• Insurance premiums the mortgagor was obligated to pay under the mortgage and that the purchaser paid to maintain coverage Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-3240

Property Maintenance Obligation

No Michigan statute expressly imposes a property maintenance obligation on the sheriff’s-deed purchaser during the redemption period. The mortgagor in possession retains the obligation to maintain the property (not commit waste). If the mortgagor commits waste or damage, the purchaser’s remedy is to invoke the inspection rights under MCL 600.3238 and, if damage is confirmed or imminent, commence summary possession proceedings. needs_verification for any Michigan case specifically imposing an affirmative maintenance duty on the purchaser-in-waiting during the redemption period.

11b. Restrictions & Special Rules

Entity Purchase Restrictions

No natural-persons-only restriction. Michigan’s GPTA does not limit auction purchasers to natural persons. LLCs and corporations may bid and purchase. Foreign entities (entities not organized under Michigan law) may also purchase, subject to applicable state registration requirements for conducting business in Michigan.

Affidavit requirement (MCL 211.78m(5)): All purchasers at the GPTA auction must execute an affidavit under penalty of perjury affirming that they:

1. Do not directly or indirectly hold more than a minimal legal interest in any property with delinquent property taxes in the same county; and
2. Are not directly or indirectly responsible for unpaid civil fines for an ordinance violation.

A person convicted of executing a false affidavit is permanently prohibited from bidding at any future GPTA sale in that county (MCL 211.78m(6)). Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78m

Insider Prohibition

No specific “insider” prohibition (e.g., county employees, treasurer’s staff barred from bidding) was found in a primary GPTA statute — needs_verification. The affidavit requirement regarding delinquent-property interests functionally bars county officials who have delinquent tax interests, but a categorical insider prohibition is not confirmed.

Right of First Refusal

Statutory ROFR before the public auction (MCL 211.78m(1)): Before the property reaches the public auction, a layered ROFR allows:

1. The State of Michigan to purchase at the greater of fair market value or the minimum bid;
2. A city, village, township, or city authority where the property is located;
3. The county.

Each tier has a defined exercise window (through approximately the first Tuesday in July). If none exercise the ROFR, the property proceeds to the public auction.

Municipalities / CDCs / nonprofits / land banks: The Land Bank Fast Track Act (2003 PA 258, MCL 124.751–124.774) establishes local land bank fast track authorities that can receive unsold or ROFR-acquired properties, conduct expedited quiet title proceedings (MCL 124.759), and manage/redevelop tax-reverted parcels. Where the State as FGU retains unsold property, title vests in the Michigan Land Bank Fast Track Authority (MCL 124.765). CDCs and nonprofits do not have a separate statutory ROFR but can partner with or receive properties from land bank authorities. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78m Source: https://legislature.mi.gov/Laws/MCL?objectName=MCL-124-759

Land Bank Program

Exists: YES. Michigan has an extensive land bank system.

• Name: Michigan Land Bank Fast Track Authority (state-level); individual county and city land bank authorities (e.g., Detroit Land Bank Authority, Wayne County Land Bank, Genesee County Land Bank).
• Statute: Land Bank Fast Track Act, 2003 PA 258, MCL 124.751–124.774.
• Receives unsold properties: YES. Where the FGU retains property that does not sell at auction (no bid ≥ minimum bid), it may transfer to the land bank authority. Where the State is the FGU and retains property, title vests in the Michigan Land Bank Fast Track Authority (MCL 124.765).
• Operational notes: Land bank authorities may: hold, manage, sell, lease, or demolish properties; exercise the ROFR tiers; pursue expedited quiet title (MCL 124.759); and accept deed-in-lieu of foreclosure with approval of all taxing jurisdictions (MCL 124.756). Source: https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-124-756

Deficiency Judgment

After tax sale: There is no deficiency judgment mechanism in GPTA tax foreclosure. The in-rem proceeding extinguishes the tax debt against the property; the former owner has no personal liability for any shortfall between the tax debt and the auction price. The former owner’s recourse is the remaining-proceeds claim under MCL 211.78t if the auction generates surplus. No deficiency after a GPTA tax sale.

After mortgage foreclosure: Deficiency judgments are permitted in Michigan, both after judicial foreclosure and (with conditions) after foreclosure by advertisement. Under MCL 600.3280, when the mortgagee is the purchaser at a foreclosure-by-advertisement sale, the mortgagor may assert the fair-value defense — showing the property was “fairly worth the amount of the debt” or that the bid was “substantially less than its true value” — to reduce or eliminate the deficiency. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-3280

Anti-Deficiency Statute

Michigan does not have a general anti-deficiency statute prohibiting deficiency judgments after mortgage foreclosure. The fair-value defense in MCL 600.3280 is a partial protection (only applies when the mortgagee buys at the sale) but is not a categorical prohibition. Purchase-money mortgages are not separately protected from deficiency judgments under a dedicated anti-deficiency provision — needs_verification for any Michigan case establishing a purchase-money-mortgage exception.

One-Action Rule

Exists: YES, in a limited form. MCL 600.3204(b) requires, as a precondition to foreclosure by advertisement, that no prior action has been instituted “to recover the debt secured by the mortgage or any part of the mortgage” (or, if one was instituted, it was discontinued or execution returned unsatisfied). The purpose is to prevent concurrent mortgage-debt actions and simultaneous foreclosure, prohibiting harassment of the mortgagor and double recovery.

Scope: Applies to foreclosure by advertisement; it does not create a broad one-action rule barring all separate collection efforts. Guarantor actions may be brought separately because guaranty obligations are generally treated as separate from the mortgage note — unless the mortgage language specifically incorporates guaranties as secured indebtedness. Source: https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-600-3204 Source: https://natlawreview.com/article/more-legal-maneuvering-over-scope-and-applicability-michigan-s-one-action-rule-gover

Who this page is for

▸ For Investors / Operators — Start with §1 (highest-bid deed auction, the third- Tuesday-in-July through first-Tuesday-in-November window, the layered right of first refusal that can divert a parcel pre-auction, and the affidavit/anti-collusion bid rules), §2 (no post-sale redemption for tax deeds — finality at the March 31 cutoff), §2b (Michigan is a deed state with no certificates to assign), §5b (path to marketable title — quiet title under MCL 600.2932, the MCL 211.79a expedited abandoned-property route, and the 40-year MRTA), §7b (interests that survive — the Part 201 environmental super-lien, the surviving HOA covenant duty, and the IRS § 7425 120-day redemption), and §11b (broad entity eligibility, the Land Bank Fast Track Act, the MCL 600.3204(b) one-action rule, and no deficiency after a tax sale).

▸ For Former Owners — Start with §3 (the remaining proceeds above taxes, interest, penalties, and fees are yours under Rafaeli and MCL 211.78t, claimed by the two-step Form 5743 Notice of Intention by July 1 and a motion in the February 1–May 15 window — missing either bars recovery, and the claim passes only by testate/ intestate succession), §2 (pre-judgment redemption by paying the delinquency on or before March 31), and §5c (grounds and the firm timing for an emergency motion, which must be heard before the March 31 finality date to halt a tax foreclosure).

11. Meta

• sources:
  • {type: statute, url: “https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78t”, retrieved: 2026-06-01} # remaining-proceeds claim process, deadlines, exclusivity
  • {type: statute, url: “https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78g”, retrieved: 2026-06-01} # forfeiture, $175 fee, 1/2%/mo interest, March 31 redemption cutoff
  • {type: statute, url: “https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78m”, retrieved: 2026-06-01} # auction, right of first refusal, fee-simple deed, minimum bid, 30-day notice
  • {type: statute, url: “https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-78k”, retrieved: 2026-06-02} # judgment finality, lien extinguishment, exceptions, grounds for objection
  • {type: statute, url: “https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-3240”, retrieved: 2026-06-01} # mortgage redemption periods, amount, subsequent taxes added to redemption
  • {type: statute, url: “https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-3280”, retrieved: 2026-06-01} # deficiency fair-value defense
  • {type: statute, url: “https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-600-3204”, retrieved: 2026-06-01} # foreclosure by advertisement conditions; one-action rule (600.3204(b))
  • {type: statute, url: “https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-3238”, retrieved: 2026-06-02} # purchaser inspection rights; 72-hour notice; possession on redemption refusal/damage
  • {type: statute, url: “https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-3237”, retrieved: 2026-06-02} # notice to mortgagor (includes estimated redemption expiration date)
  • {type: statute, url: “https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-211-79a”, retrieved: 2026-06-02} # expedited quiet title for abandoned-property tax deeds; circuit court procedure
  • {type: statute, url: “https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-559-208”, retrieved: 2026-06-02} # HOA/condo assessment lien priority; limited super-priority; not over pre-existing first mortgage
  • {type: statute, url: “https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-324-20138”, retrieved: 2026-06-02} # Michigan environmental super-lien (Part 201 / NRPA); survives GPTA tax sale per 211.78k(5)(c)
  • {type: statute, url: “https://legislature.mi.gov/Laws/MCL?objectName=MCL-124-759”, retrieved: 2026-06-02} # land bank expedited quiet title and foreclosure
  • {type: statute, url: “https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-124-756”, retrieved: 2026-06-02} # land bank authority powers; deed-in-lieu; management
  • {type: federal_statute, url: “https://www.law.cornell.edu/uscode/text/26/7425”, retrieved: 2026-06-02} # IRS 120-day redemption right; 25-day pre-sale notice; applies to non-judicial sales
  • {type: case, url: “https://www.courts.michigan.gov/siteassets/case-documents/uploads/OPINIONS/FINAL/SCT/156849_143_01.pdf”, retrieved: 2026-06-01} # Rafaeli opinion
  • {type: case, url: “https://supreme.justia.com/cases/federal/us/598/22-166/”, retrieved: 2026-06-01} # Tyler v. Hennepin
  • {type: case, url: “https://www.supremecourt.gov/opinions/22pdf/22-166_8n59.pdf”, retrieved: 2026-06-01} # Tyler slip opinion
  • {type: case, url: “https://caselaw.findlaw.com/mi-supreme-court/1442630.html”, retrieved: 2026-06-01} # Sidun v. Wayne County Treasurer
  • {type: case, url: “https://www.courtlistener.com/opinion/839205/sidun-v-wayne-county-treasurer/”, retrieved: 2026-06-01} # Sidun (parallel)
  • {type: case, url: “https://www.courts.michigan.gov/4aa515/siteassets/case-documents/uploads/opinions/final/sct/166320_105_01.pdf”, retrieved: 2026-06-01} # Jackson v. Southfield NRI
  • {type: secondary, url: “https://www.inversecondemnation.com/2025/07/michigan-govt-cant-avoid-a-rafaeli-taking-just-by-having-a-proxy-do-it.html”, retrieved: 2026-06-01}
  • {type: secondary, url: “https://www.mikameyers.com/michigan-court-of-appeals-concludes-that-statutory-process-to-claim-surplus-proceeds-resulting-from-tax-foreclosure-is-not-unconstitutional/”, retrieved: 2026-06-01}
  • {type: secondary, url: “https://www.monroecountylawyers.com/blog/2021/07/what-happens-to-the-surplus-money-after-a-foreclosure-sale-in-michigan/”, retrieved: 2026-06-01}
  • {type: secondary, url: “https://liensuite.com/quiet-title/michigan”, retrieved: 2026-06-02} # quiet title timeline/cost
  • {type: secondary, url: “https://www.kuhnrogers.com/michigans-marketable-record-title-act-recording-requirements-and-extinguishment-of-old-interests/”, retrieved: 2026-06-02} # MRTA 40-yr lookback
  • {type: secondary, url: “https://micondolaw.com/2025/03/20/michigan-court-confirms-tax-foreclosure-sale-does-not-eliminate-obligation-to-pay-hoa-assessments/”, retrieved: 2026-06-02} # HOA assessment obligation survives tax sale
  • {type: secondary, url: “https://natlawreview.com/article/more-legal-maneuvering-over-scope-and-applicability-michigan-s-one-action-rule-gover”, retrieved: 2026-06-02} # Michigan one-action rule MCL 600.3204(b)
  • {type: secondary, url: “https://www.plunkettcooney.com/dontbetthebusinessblog/understanding-preliminary-injunctions”, retrieved: 2026-06-02} # 4-factor PI test MCR 3.310
  • {type: official, url: “https://www.michigan.gov/taxes/property/forfeiture-foreclosure/county/auctions”, retrieved: 2026-06-01}
• needs_verification:

  RESOLVED 2026-06-01: MCL 211.78t deadlines confirmed — Notice of Intention due July 1 (78t(2)); motion window Feb 1–May 15 (78t(4)).

  • “Third-party recovery-agent rules for 78t remaining proceeds: fee cap, licensing, cooling-off — no 78t-specific primary source. (UUPA 10% finder cap MCL 567.265 likely inapplicable.)”
  • “Whether unclaimed remaining proceeds are retained by FGU or escheated when no timely Notice of Intention is filed.”
  • “Exact subsection requiring FGU to notify former owners of the 78t claim process.”
  • “Mortgage reinstatement mechanics / MCL 600.3205a et seq. current rules.”
  • “GPTA special tolling for minors/incompetents/SCRA against the March 31 cutoff.”
  • “Title-insurance seasoning requirement for Michigan tax deeds — primary insurer underwriting guideline.”
  • “Statute-of-limitations / collateral-attack period for a GPTA judgment beyond the MCL 211.78k(6) finality bar.”
  • “Manufactured-home realty-vs-personalty tax treatment.”
  • “Jackson v. Southfield NRI (Mich Sup Ct Docket 166320, 2025-07-16) — exact bound-volume Michigan Reports / NW3d reporter citation not confirmed against final reporter.”
  • “Whether post-foreclosure assignee of former owner’s interest qualifies as ‘78t claimant’ — assignability question (now moot for new claims given MCL 211.78t(3) non-transferability, but open for pre-2023 period).”
  • “Whether a probate estate must be formally opened for a deceased owner’s heirs to file a 78t claim, or whether intestate succession can be proven directly in the 78t motion.”
  • “Mortgage surplus SOL under MCL 600.3252 — no primary source confirmed; MCL 600.5807 6-year general limit likely applies.”
  • “Michigan purchase-money-mortgage anti-deficiency exception — no primary case confirming or denying.”
  • “Insider prohibition in GPTA auctions — no categorical prohibition found; needs verification that county employees/officials are not separately barred.”
  • “CERCLA federal lien survival after GPTA tax sale — whether the MCL 211.78k(5)(c) NRPA carve-out also preserves federal CERCLA liens or only state NRPA liens.”
  • “Michigan mechanic lien survival after GPTA tax sale — primary case needed; statutory language suggests extinguishment.”
  • “Equitable redemption as a distinct doctrine in Michigan tax foreclosure — primary authority expressly distinguishing it from statutory redemption.”
  • “Tax foreclosure avoidance agreement installment redemption under MCL 211.78g — exact eligibility and mechanics.”
  • “Purchaser maintenance obligation during mortgage-foreclosure redemption period — Michigan primary case.”
  • “Stand-alone notice requirement to mortgagor of impending redemption expiration (beyond the inspection-notice disclosure in MCL 600.3237).”
• open_questions:
  • “Post-Rafaeli/78t, are any counties still litigating retention of pre-2020 surplus (retroactivity)?”
  • “Does the State-as-FGU vs. county-as-FGU distinction change the 78t filing venue mechanics in practice?”
  • “How does Michigan’s MRTA 40-year lookback interact with GPTA tax deed titles that reset the chain of title?”
• changelog:
  • {date: 2026-06-01, note: “Initial Michigan page drafted from GPTA (211.78 series), RJA mortgage chapters (600.3204/3240/3252/3280), Rafaeli, Tyler, Sidun, and COA 78t case.“}
  • {date: 2026-06-01, note: “Citation fix: split incorrect jackson-v-southfield-2024 row into barry-county-treasurer-foreclosure-2024 and jackson-v-southfield-nri. Resolved MCL 211.78t Feb 1–May 15 motion-window needs_verification flag.“}
  • {date: 2026-06-02, note: “Added 7 advanced modules (2b/3b/5b/5c/7b/10b/11b). Key new findings: MCL 211.78t(3) prohibits full assignment of remaining-proceeds claim (only testate/intestate succession); MCL 211.78k(5)(c) extinguishes all liens including municipal/blight/mechanic with narrow NRPA exception; Michigan Part 201 environmental super-lien (MCL 324.20138) survives GPTA tax sale; HOA assessment lien extinguished but covenant obligation survives; MCL 600.3238 governs purchaser inspection rights and 72-hour notice; no anti-deficiency statute but fair-value defense MCL 600.3280; one-action rule MCL 600.3204(b) for foreclosure by advertisement; MRTA 40-year lookback MCL 565.101 et seq.; Land Bank Fast Track Act 2003 PA 258.”}
• cross_links: right-of-redemption, surplus-funds, third-party-recovery-rules, treasurer-sale, sheriff-sale, due-process-notice, tyler-v-hennepin-county, rafaeli-v-oakland-county-2020, sidun-v-wayne-county-treasurer-2008, jones-v-flowers, mennonite-v-adams, jackson-v-southfield-2025, barry-county-treasurer-foreclosure-2024, bankruptcy-automatic-stay, federal-tax-lien-redemption, heirs-property, quiet-title-after-tax-sale, environmental-liens, land-bank-programs

Local pages

County deep dives: genesee-mi, ingham-mi, kalamazoo-mi, kent-mi, livingston-mi, macomb-mi, oakland-mi, ottawa-mi, saginaw-mi, washtenaw-mi, wayne-mi Unclaimed funds agency: unclaimed-property-michigan

Legal information, not legal advice. This page summarizes Michigan tax- and mortgage-foreclosure law from primary sources retrieved on 2026-06-01 and 2026-06-02. Statutes and case law change; verify against the cited primary sources and consult a licensed Michigan attorney before acting.