A Certificate of Redemption in Michigan is the recorded legal document proving that a property owner paid everything owed in time to reclaim real estate after a mortgage or tax foreclosure sale. Once it’s recorded with the county Register of Deeds, the prior sale is void and the owner’s title is restored as if the foreclosure never happened. Getting one means paying the full redemption amount within a statutory window that differs sharply depending on whether the foreclosure was for an unpaid mortgage or delinquent property taxes.
How Long You Have to Redeem After a Mortgage Foreclosure
The redemption clock starts on the date of the sheriff’s sale, not the date the foreclosure was filed or noticed.1Michigan Legislature. Michigan Code 600.3240 – Redemption From that date, Michigan law gives you one of several windows depending on the property type, the debt-to-original-loan ratio, and whether the property has been declared abandoned.
- Six months is the most common period. It applies to residential property with four or fewer units on three acres or less when the amount claimed due at the foreclosure notice exceeds two-thirds of the original loan. It also applies to commercial, industrial, and multifamily residential property with more than four units.
- One year applies when the amount due is two-thirds or less of the original loan balance, and to agricultural property that doesn’t qualify for a shorter period.
- Three months applies to residential property with four or fewer units that has been determined abandoned under MCL 600.3241, where the amount due is two-thirds or less of the original debt.
- One month applies to residential property with four or fewer units determined abandoned under MCL 600.3241 where the amount due exceeds two-thirds of the original debt.
- 30 days applies to property determined abandoned under the separate process in MCL 600.3241a, regardless of the debt ratio.
Abandonment Is a Formal Finding, Not a Guess
The shortened periods only kick in after the lender takes specific steps. Under MCL 600.3241a, the mortgagee must personally inspect the property and find no evidence of occupancy, post a notice at the property, and send a certified-mail notice to the owner’s last known address stating that the property is considered abandoned. If the owner doesn’t respond in writing within 15 days, abandonment is conclusively presumed and the redemption window drops to 30 days.2Michigan Legislature. Michigan Code 600.3241a – Abandoned Premises
If you’re still living in the property or plan to return, answering that notice within 15 days is one of the most important things you can do. Missing it can functionally eliminate your redemption window.
What You Actually Have to Pay
The mortgage redemption amount is not the balance remaining on your loan. It’s the price the property sold for at the sheriff’s sale, plus interest at the rate specified in your original mortgage from the sale date through the day you pay, plus a $5 fee if payment goes through the Register of Deeds.1Michigan Legislature. Michigan Code 600.3240 – Redemption
The purchaser at the sheriff’s sale can add certain post-sale expenses: property taxes they paid, condominium or homeowner association assessments, and insurance premiums needed to keep coverage in force. Interest at the mortgage rate accrues on those added amounts from the date the purchaser paid them. These extras only count if the purchaser files an affidavit with the Register of Deeds documenting each payment.1Michigan Legislature. Michigan Code 600.3240 – Redemption
Getting the Payoff Number
The Register of Deeds is prohibited by statute from calculating your redemption amount. Instead, the purchaser at the sheriff’s sale files an affidavit with the recorded deed stating the exact payoff figure, including any daily per diem for accruing interest. You rely on that affidavit to know what to pay.1Michigan Legislature. Michigan Code 600.3240 – Redemption
The purchaser may name a designee in the affidavit, typically a law firm or servicing company, to handle calculations and accept payment. A designee can charge up to $250 for the service, and the purchaser must accept whatever amount the designee computes. If a designee is listed, you generally have to work through them to get your final number and make payment.1Michigan Legislature. Michigan Code 600.3240 – Redemption
Partial payments won’t work. The statute requires payment of the full amount, and there is no statutory right to redeem in installments.
Tax Foreclosure Redemption Is a Different Process
If the foreclosure was for delinquent property taxes rather than an unpaid mortgage, both the timeline and the payment calculation change. The county treasurer manages the process, and the amount owed includes the unpaid taxes, a 4% county property tax administration fee, noncompounded interest of 1% per month from delinquency, additional post-forfeiture interest of one-half percent per month, a $175 county treasurer fee once the property is forfeited, recording fees, and any costs for service of process or notice.3Michigan Legislature. Michigan Code 211.78g – Property Delinquent for Preceding 12 Months You don’t calculate this yourself; the county treasurer provides the payoff.
The March 31 Deadline Is Absolute
Property forfeited to the county treasurer can be redeemed up until March 31 following the entry of a foreclosure judgment, or in contested cases, within 21 days of the judgment. After that, fee simple title vests in the Foreclosing Governmental Unit, all liens against the property are extinguished, and there is no further right of redemption.4Michigan Legislature. Michigan Compiled Laws 211.78k – Foreclosure Judgment
Unlike a mortgage redemption window counted in months from a sale, the tax deadline is tied to the court’s calendar. If you pay in full before the hearing date, the court doesn’t enter a foreclosure judgment at all and the county treasurer issues a redemption certificate directly.
Who Can Redeem
Redemption isn’t limited to the person named on the mortgage or tax bill. For mortgage foreclosures, Michigan law allows the mortgagor, their heirs or personal representative, or anyone with a recorded interest in the property who lawfully claims under the owner to redeem.1Michigan Legislature. Michigan Code 600.3240 – Redemption A surviving spouse, a junior lienholder, or a family member acting as estate representative can step in and pay.
The same principle applies to tax foreclosures: anyone with an ownership interest or recorded lien can pay the county treasurer. The certificate names whoever made the payment, but the effect is to preserve title for the record owner.
Getting the Certificate Issued and Recorded
For a mortgage foreclosure, the Register of Deeds issues the certificate when payment is made through that office. If you pay the purchaser or their designee directly, they provide documentation confirming the sheriff’s deed has been voided. Either path requires the full payment: bid price, all accrued interest, any lawful post-sale expenses the purchaser documented by affidavit, and the $5 Register of Deeds fee if applicable.1Michigan Legislature. Michigan Code 600.3240 – Redemption
For a tax foreclosure, the county treasurer issues a County Treasurer Redemption Certificate identifying the payoff amount, the person who paid, and the parcel number, and canceling the property from any previously issued Certificate of Forfeiture.
In either case, the certificate must be recorded with the county Register of Deeds. Recording is what gives public notice that the property has been reclaimed. Until it’s recorded, the foreclosure sale still shows up as the last transaction in the chain of title, which can block a later sale, refinance, or title insurance commitment.
What the Recorded Certificate Legally Does
A properly recorded redemption voids the foreclosure sale. For a mortgage foreclosure, the statute says the purchaser’s deed “is void” upon redemption.1Michigan Legislature. Michigan Code 600.3240 – Redemption Title returns to the owner as if the sale never occurred, the mortgage debt is satisfied to the extent of the sale price, and the Register of Deeds notes the redemption on the record.
For a tax redemption, the recorded certificate cancels the forfeiture, satisfies the taxing authority’s claim, and confirms continuous ownership free of the prior delinquency.
Two Federal Issues That Can Change the Timeline
A bankruptcy filing doesn’t automatically extend a Michigan redemption period, but it can buy limited extra time. Federal law provides that if a deadline to cure a default hasn’t expired before the bankruptcy petition is filed, the debtor may act before the later of the original deadline or 60 days after the order for relief.5Office of the Law Revision Counsel. 11 U.S. Code 108 – Extension of Time A filing near the end of a redemption period could extend the window by up to 60 days. A filing after the period has already expired does nothing.
If the property has a federal tax lien, the IRS also has its own right to redeem after a foreclosure sale. The IRS has 120 days from the sale date or the full period allowed under Michigan law, whichever is longer.6Office of the Law Revision Counsel. 26 U.S. Code 7425 – Discharge of Liens The IRS uses this power when a property sells well below market value and federal tax debt remains; if it redeems, it takes title, resells the property, and applies the proceeds to the taxpayer’s liability.7Internal Revenue Service. 5.12.5 Redemptions Anyone buying at a Michigan foreclosure sale should confirm whether a federal tax lien exists, because this right can override a completed sale even after the state redemption period ends.