11/09/2025

In 2023, Michigan reported approximately 12,490 total foreclosures, ranking ninth in the nation for total cases and thirteenth for foreclosure rate, at 0.27%. Wayne, Oakland, and Macomb counties recorded the highest numbers. Detroit alone had a high number of bank repossessions, signaling persistent challenges in the urban core.

For 2024, the trend moved downward. By October, there were around 1,169 filings, and other estimates place the year-end total at just over 2,600. Counties most affected remained Wayne, Oakland, and Macomb, with increases seen in some rural and northern counties as well.

Through 2025, the decline continued—about 867 filings as of October, with the state ranking nineteenth to twenty-sixth in the nation for foreclosure activity, based on updated records. In the first half of the year, Michigan was among the top five states for completed foreclosures, reporting over 1,200 bank-owned (REO) properties during this period.

Looking ahead to 2026, most analysts expect further decreases, projecting around 950 foreclosure filings statewide if current trends persist and housing support policies remain strong. While the volume is lower than pre-pandemic levels, the issue still requires attention, especially in at-risk communities and for property owners who face sudden economic hardship.

Michigan Foreclosure Process: Step-by-Step

1. Delinquency: The process begins when mortgage payments are missed and the account becomes delinquent. Lenders generally make contact to offer solutions such as repayment plans or loan modifications.
2. Foreclosure Notice: If the default remains unresolved for about 120 days, the lender issues a foreclosure notice and schedules a public auction, known as a Sheriff’s Sale. The sale is advertised in local newspapers and posted on the property at least four weeks in advance.
3. Sheriff’s Sale: The property goes to public auction, where it is sold to the highest bidder. A Sheriff’s Deed is issued, which starts the next phase of the process.
4. Redemption Period: The previous homeowner usually has six months to redeem the property by paying off the total owed. Some properties allow for a year-long redemption, depending on certain factors like type of property or amount due.
5. Eviction and REO: If the property remains unredeemed, the new owner—often the lender—can proceed with eviction and the property becomes a bank-owned asset (REO).

Projected Trends and Important Notes

• Michigan’s foreclosure filings have continued to decline from the heights of prior years, supported by targeted homeowner assistance and the stabilization of the state’s economy.
• Some counties, especially urban centers, have a higher concentration of cases and bank repossessions.
• Homeowners at risk should seek help early, making use of housing counselors, legal resources, and financial education services.
• The average time to complete a foreclosure has gradually increased, providing more breathing room for at-risk homeowners to seek solutions or negotiate with lenders.

Resources for Homeowners

• Michigan Housing Development Authority
• HUD-Approved Housing Counselors (Phone: 1-800-569-4287)
• Legal Services Corporation
• State of Michigan Foreclosure Timeline Resources
• Equity Edge Surplus Recovery Group for guidance and surplus fund recovery support

If you or someone you know is facing foreclosure, current and reliable information is vital. Michigan’s outlook for 2026 is more hopeful, and acting early can make all the difference in protecting your home and your financial future.