Foreclosure Procedures under CFPB Regulation X and
Michigan Non-Judicial Foreclosure Statute
Day 1
By Day 36
By Day 45
Not Before Day
120
First missed payment
Servicer must make good faith effort to establish live contact with
borrower by phone or in-person and inform borrower of loss mitigation
options.
**this provision does not apply to small servicers, 1 qualified lenders,2
reverse mortgages,3 open end lines of credit such as HELOCS, 4 and the
property must be the borrower’s principal residence.
Servicer must send written notice to borrower with servicer’s contact
information, information regarding available loss mitigation options, and
HUD counselor contact information
**this provision does not apply to small servicers, qualified lenders,
reverse mortgages, open end lines of credit such as HELOCS, and the
property must be the borrower’s principal residence.
Servicer cannot initiate foreclosure prior to day 120. In Michigan, a nonjudicial foreclosure is initiated by the “earliest document required to be
published.”
12 CFR 1024.39(a)
12 CFR 1024.39(b)
12 CFR 1024.41(f)
However, if complete loss mitigation application has been submitted to
servicer prior to the initiation of foreclosure, then the servicer must not
refer to foreclosure until finished with evaluation of the application even if
past day 120.
4 Weeks Prior to
Sale
Within 15 days of
first publication
Sale Date
After Sale
**this provision does not apply qualified lenders, reverse mortgages,
open end lines of credit such as HELOCS, and the property must be the
borrower’s principal residence. Small servicers must comply with this
provision.
Publish notice in newspaper in county once a week for four weeks prior
to sale
Post notice on the property (no personal service required)
Sheriff’s Sale. May be adjourned on a week to week basis by posting
notice at place of sale.
Redemption Period:
 For most properties, six months
 For agricultural properties, can be up to one year but must
provide the necessary proof according to statutory procedure
 If more than 2/3 of loan paid, one year
 If abandoned and statutory procedure followed, one month
 Purchaser has the right to inspect the property; if inspection
unreasonably refused, then redemption period can be
terminated immediately and summary proceedings filed
 If property is in need of repairs or in imminent need of repairs, a
seven day notice to repair should be issued and if repairs are
not made, then the redemption period can be terminated
immediately and summary proceedings filed.
 Interior inspection is permitted after an initial notice providing
information regarding the purchaser and the parties’ rights with
1
MCL 600.3208
MCL 600.3208
MCL 600.3220
MCL 600.3240
MCL 600.3238
MCL 600.3237
Small servicers service 5000 or fewer loans and are the creditor (originating lender) or assignee for all of them or are a
Housing Finance Agency. 12 CFR 1026.41(e)(4).
2 Qualified lenders are those who qualify under the Farm Credit Act. 12 CFR 617.7000.
3 12 CFR 1024.31
4 12 CFR 1024.31
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
72 hours notice; may request additional information after initial
inspection
When owner/occupant moves out of the property, if the
purchaser provided the interior inspection information notice
under MCL 600.3237 then the owner/occupant must provide a
ten day notice to the purchaser of their move out date or risk
additional liability for damages to the property occurring during
the redemption period.
MCL 600.3278
If Loss Mitigation Application Submitted Prior to Sale:
**this provision does not apply to small servicers, qualified lenders, reverse mortgages, open end lines of credit such as
HELOCS, and the property must be the borrower’s principal residence.
Within 5 days of
If packet is submitted more than 45 days before sheriff’s sale, Servicer
12 CFR
submission
must give notice that packet is complete, or if packet is incomplete what
1024.41(b)(2)(i)(B)
additional information is required with a reasonable deadline for
submitting
Within 30 days of If at least 37 days before sale date, servicer must evaluate for available
12 CFR 1024.41(c)
complete packet
loss mitigation options and provide written decision to borrower
submission
regarding eligibility for those options.
When borrower
must accept or
reject loss mit
offer
If application submitted during 120 day pre-foreclosure period and/or at
least 90 days before sale date, borrower must be provided with
information regarding appeal rights and an opportunity to appeal. If no
foreclosure sale has been scheduled as of the date a complete loss
mitigation application has been received, the application is considered to
have been received more than 90 days prior to sale date.
 If submitted 90 days prior to sale: borrower must be given 14
days to accept or reject offer
 If submitted within 90 days of sale but at least 37 days before
sale: borrower must be given seven days to accept or reject
offer
 If borrower appeals: must have 14 days to accept or reject after
appeal decision notice sent
If borrower disputes account or requires additional information regarding account
**this provision does not apply open end lines of credit such as HELOCS
Borrower may send to designated address (not attorney or payment
address):
1. Qualified Written Request (QWR)
2. Error Resolution Notice (NOE)
3. Request for Information (RFI)
Within 5 days
Servicer must acknowledge receipt of QWR/NOE/RFI
Within 30/45
Servicer must respond to most QWR/NOE/RFIs within 30 days but may
days
request an extension of up to 15 days in some situations.
 If NOE is sent up to seven days before foreclosure sale,
servicer must respond prior to the foreclosure sale. 12 CFR
1024.35(f)(2).
 If NOE disputes payoff statement, servicer has seven days to
respond.
 If loan owner information requested, servicer must respond
within ten days.
12 CFR 1024.41(e)
QWR:
NOE:
12 CFR 1024.35
RFI:
12 CFR 1024.36
** Prepared by Karen Merrill Tjapkes, LAWM
June 2014
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