One of the best ways to buy property is by using Michigan foreclosure listings. Foreclosure listings provide a great deal of property information that can help you decide upon a competitive sales price. It is important to determine the market value of foreclosure property as you can typically buy foreclosed properties for as little as 80 percent of the market value.

For best results, restrict your search of foreclosure property listings in Michigan to a particular geographical area. You then may narrow your search further according to other criteria, such as the type of property you are most interested in or square footage. There are primarily three types of foreclosure listings:

1. Free foreclosure listings in Michigan from a local bank; you may not be able to get these listings if the property is owned by a third party.
2. Foreclosure listings from online sources; these listings are normally updated dynamically.
3. Lists of bank foreclosures from a licensed Realtor; these lists are available to the general public and quickly become outdated.
   

Action Steps
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Locate a Michigan foreclosure list in your area

Most sites with foreclosure listings offer free trials before charging for a memberships. The sites include a property search by location and may include photos, neighborhood and school system profiles.

I recommend: Use ForeclosureNet.net to get information on current foreclosure listings in Wayne County. Foreclosure Dataonline provides a foreclosure list that contains general information on properties in Kalamazoo, such as zip code, price and style.

Use databases on Michigan foreclosed homes to narrow search criteria

Once you've found a Michigan foreclosure website, use the site's database of foreclosed properties to learn specific information about properties. Michigan foreclosed home databases typically provide details that allow you to narrow down your online database search using criteria such as property value, property type, property statistics and loan type.

I recommend: RealtyTrac offers foreclosures in Lansing from which you can narrow search criteria by pre-foreclosures, auctions, bank-owned, FSBO and resale properties. Get detailed information about foreclosures in Detroit, including foreclosure type, beds, baths and price range, at Foreclosure Listings.

Make quick contact to purchase Michigan foreclosure properties

When you find a foreclosed property you would like to purchase, it is important to contact the homeowners as quickly as possible since they will likely be contacted many times during the course of the foreclosure process. Most online foreclosure databases provide contact information to learn more about the home and how it will be sold.

I recommend: Access a complete list of foreclosure properties in Grand Rapids, along with the contact information for each property, when you register for the free trial at ForeclosureFetcher. Get helpful information about the procedure for making contact with sellers for pre-foreclosures, foreclosure auctions, bank foreclosures, REO properties and HUD properties at E-ForeclosureSearch.com.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You can work directly with the owner to buy a pre-foreclosure property. The advantage of this method over buying foreclosed homes in Michigan is that the discount may be as much as 30 percent. However, it can be difficult to locate owners that have failed to make their mortgage payments.

Michigan's struggling auto industry and fluctuations in the real estate market nationwide result in many foreclosed homes in Michigan.

The location of Michigan foreclosure properties covers the entire state. Choose from large urban areas like Detroit or Lansing, out-state farmlands, lake or riverside dwellings, many cities and towns, cottages, and the beautiful costal area of the Great Lakes.

If you are considering Michigan foreclosure listings for a possible investment, consider:

1. What is the maximum price I’m willing to pay?

2. What property features am I looking for?

3. What location do I want?

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Find free foreclosure listings in Michigan

To view the free foreclosure listings in Michigan, some websites require registering your name and address for full details.

I recommend: The Michigan foreclosure list by county at MI-Foreclosures.com. Receive free informational emails based on your criteria for foreclosed homes in Michigan at EmailForeclosures.com.

Choose low-fee membership websites for foreclosure property listings in Michigan

These websites typically offer a 7 day trial period. After that they require a nominal membership fee payable either weekly, monthly or yearly.

I recommend: ForeclosureDeals.com details Michigan foreclosures that includes bank foreclosures, repossessed homes, real estate and foreclosures investments. Another website, Foreclosure.com maintains an area map and many photos of their listings by county or city.

Search a Michigan foreclosure list for pre-foreclosures

A pre-foreclosure is a property that hasn't quite reached foreclosure status, but may soon. The owner is often a very motivated seller with their property on the market at a steep discount.

I recommend: To find a Michigan foreclosure listing for pre-foreclosure homes, select an area from FindMeDistressedHomes.com. West Michigan Pre-Foreclosure Leads updates their website each week and costs a nominal fee.

Locate auction foreclosures in Michigan

A trustee or sheriff auctions these properties usually at a county courthouse.

I recommend: For a small yearly fee Government-Auctions-Guide.com offers complete access to government auctions in Michigan. Foreclosure Warehouse lets you know in advance about foreclosure auctions and other types of foreclosures.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Michigan is a title theory state which holds the property in trust until paid in full.
• •  Chapter 451 of the Michigan Compiled laws governs Michigan foreclosures.
• •  Investigate property background for tax liens and multiple mortgages.

Making the most of Michigan foreclosure listings allows you to buy a property well below market value. Foreclosure listings are used both by investors wishing to sell the property for a quick profit and business owners who want to use the property for their business.

A property appears on a Michigan foreclosure list because the owner has missed some mortgage payments and is defaulting on the loan. The lender must file for foreclosure in order to collect on the remaining debt. This gives them the legal right to sell the property and it may then appear on a foreclosure listing. There are three points in the foreclosure process at which you may purchase a property:

1. The pre-foreclosure stage; the property will be foreclosed if the mortgage debt is not settled within a given amount of time.
2. The foreclosure auction; most Michigan foreclosure properties are sold at public auction because the lender only needs to recover the remaining debt instead of the property’s full value.
3. Real Estate Owned (REO) property; REO property is owned by the lender and may be purchased before or after the auction.

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Learn about the laws on foreclosure property listings in Michigan

Foreclosure laws vary by state and cover issues such as foreclosure notices, sales procedures and deficiency judgments. Most states allow for a judicial foreclosure, which requires filing a lawsuit to get a court order to foreclose. Generally the property will be auctioned to the highest bidder after it is declared a foreclosure by the court.

I recommend: Foreclosure VIP provides an overview of the foreclosure laws in Michigan and also offers tips on buying a foreclosure. Michigan Foreclosure Homes summarizes the foreclosure laws and also offers a foreclosure search by county.

Get more information on foreclosure homes in Michigan

Sites that have foreclosure lists often offer current news on a foreclosure in Michigan. They may also offer other information such as a description of the foreclosure process or a FAQ on foreclosures.

I recommend: ToStopForeclosure.com provides specific information on Michigan foreclosures and also hosts other articles on foreclosures. Michigan Foreclosure Data.com offers several articles on foreclosures in Michigan.

Locate free foreclosure listings in Michigan online

Many websites allow you to search for foreclosure properties by specific location. These sites may also offer additional services to members such as email alerts and photographs of foreclosure properties.

I recommend: Mark Beydoun Re/Max Team 2000 has a complete listing of available properties and also allows you to request information on homes for sale by email. ForeclosureListingsMichigan.com provides property listings by county and offers email alerts to its members.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Determine the market value of foreclosed homes in Michigan. The best way to do this is to have the home independently appraised by a professional. You will need to make arrangements with the current owner or trustee of the home for the appraiser to visit the property. You should then compare this appraisal to the value given by the party in charge of the sale.

Foreclosure is a legal process that occurs when a lender or other lien holder repossesses the collateral, or the real property, in the case of a default. Banks usually foreclose on a home when a homeowner falls behind on mortgage payments. The laws in Michigan allow for different kinds of foreclosures, including judicial, non-judicial and government auction. The following key terms can help you understand the different types of foreclosure in Michigan.

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Non-judicial foreclosure

Most foreclosures in Michigan are considered non-judicial foreclosures. This type of foreclosure occurs when a lender includes a clause in the mortgage contract that allows them to pursue a foreclosure without a court hearing in the case of a default by the homeowner.

I recommend: Foreclosure Listings offers more information on Michigan non-judicial foreclosures.

Right to redemption

The right to redemption is allowed by Michigan foreclosure law. This right allows the defaulting borrower up to six months from the foreclosure sale to pay the winning bid amount and any other costs incurred. By paying this, the defaulting borrower can regain the property from the winning bidder.

I recommend: Foreclosure University offers education, ebooks and foreclosure database searches by state.

Judicial foreclosure

Judicial foreclosures are handled by the court system, and are not as common in Michigan. The lender files and records a Lis Pendens notice, and the defaulting borrower is served and has the opportunity to go before the court. If the debt is considered valid and in default, the court issues a judgment and a writ is issued that authorizes a sheriff's sale or auction.

I recommend: More details can be found at All Foreclosure Information.

Notice of sale or auction

In Michigan, the notice of sale is required and the sale or auction itself cannot be fewer than 28 days from the initial publication. During this period, the notice of sale must be posted on the property. The notice of sale must list the names of both the lender and borrower and the mortgage or lien details, including the amount of default, the property's legal description and the period of redemption.

I recommend: RealtyTrac details foreclosure laws and regulations in the state of Michigan.

Real-estate-owned (REO) or bank-owned

REOs are lender-owned properties that have already been repossessed from the defaulting borrower, and they are often considered good investment opportunities. The perception is that banks will negotiate more on the price in order to close the sale quickly and get the debt off their books.

I recommend: Countrywide is a lender that offers REOs for sale.

Government auction foreclosure

These foreclosures occur in Michigan when a property owner fails to pay government liens, usually a property tax lien. Michigan law allows for foreclosure auctions of tax-delinquent real property.

I recommend: The State of Michigan Department of Treasury has foreclosure properties up for auction. Most of the county treasuries use Title Check to perform the auctions each year from June through November.