Michigan Renter Rights During Landlord Foreclosure

If you’re renting a home or apartment in Michigan and your landlord is facing foreclosure, it’s essential to know your rights and options. Foreclosure can bring uncertainty, but Michigan law and federal protections ensure that tenants are not left without notice or legal recourse. This guide explains what happens to renters during a foreclosure, your rights to stay, and the steps you can take to protect yourself.

What Happens When a Landlord Faces Foreclosure in Michigan?

When a property goes into foreclosure, the lender (often a bank) begins legal steps to repossess the home due to the owner's missed mortgage payments. Even though your landlord’s financial issues are not your fault, foreclosure can affect your ability to stay in your rental home. State laws and federal protections provide important safeguards for renters in this situation.

Your Rights as a Renter During Foreclosure

As a Michigan tenant, you have specific rights if your landlord’s property is in foreclosure:

• Right to Advance Written Notice: You must receive an official written notice before any eviction proceedings can begin. Under the federal Protecting Tenants at Foreclosure Act (PTFA), you are usually entitled to at least 90 days’ notice.
• Right to Remain Until the End of Lease: If you have a valid lease, you may be allowed to stay until the lease ends unless the new owner (such as the bank) plans to use the property as their primary residence. Month-to-month renters are generally given at least 90 days’ notice.
• Security Deposit Protections: The new owner (after foreclosure) is responsible for your security deposit or must give you notice of how it will be managed.
• Legal Eviction Process: You cannot be removed without a court-ordered eviction, even after foreclosure. Always watch for official court documents and do not leave just because you get a generic notice.

For the current rules, see the Protecting Tenants at Foreclosure Act Guidance from HUD and the Michigan Truth in Renting Act.^1,2

Will My Lease Still Be Valid?

If you have a fixed-term written lease signed before the foreclosure began, it typically remains in effect. The new property owner must honor your lease until it ends, unless they intend to make the home their primary residence (which still requires 90 days' notice).

When Can I Be Evicted?

Eviction cannot occur immediately after foreclosure. The process must go through Michigan courts, and you are generally entitled to:

• Receive a written eviction notice (often called a "Notice to Quit")
• A court hearing, if you do not voluntarily move out
• At least 90 days to vacate, unless you break lease terms

Key Official Forms for Renters in Foreclosure Situations

• Notice to Quit (7-Day and 30-Day):
  • Form Name: Notice to Quit (DC 100c - Nonpayment); Notice to Quit - Other Than Nonpayment (DC 100a)
  • Usage: The new owner or lender must serve this form to start the eviction process. For example, if you receive a "Notice to Quit – Other Than Nonpayment," it means you may need to vacate due to foreclosure, but only after you receive the notice and a court order.
  • Find official forms on the Michigan Courts Landlord-Tenant Forms page.
• Complaint, Possession of Property (DC 102c):
  • Usage: This court form is used to formally begin the eviction lawsuit after the notice period expires.
  • More details and download at the Complaint, to Recover Possession of Property (DC 102c) page.

How to Respond If You Receive an Eviction Notice

• Read the notice carefully. Check if you are being asked to move due to foreclosure.
• Do not ignore court papers. Absent renters may have default judgments entered against them.
• Gather your lease, rent payment records, and notices received.
• Attend your court hearing and tell the judge if you have rights under the Protecting Tenants at Foreclosure Act or your lease.
• Contact legal aid or the local housing authority for help.

If you feel rushed or threatened to leave, remember—only a court order can remove you. Stand up for your rights calmly and with documentation.

Which Tribunal or Board Handles Tenant Issues in Michigan?

All landlord-tenant disputes, including eviction after foreclosure, are handled by the Michigan District Court system. Look up your local district court for filing details and hearing locations.

The main legislation for renters is the Michigan Truth in Renting Act.²

Frequently Asked Questions

1. Can I be evicted immediately if my landlord's property is foreclosed?
   No. Michigan renters must get written notice and usually have at least 90 days before an eviction can proceed.
2. Does my lease still protect me after foreclosure?
   Usually yes—your fixed-term lease should be honored by the new owner unless they plan to live there themselves. Even then, 90 days’ notice is required.
3. What if I only have a month-to-month rental agreement?
   With month-to-month arrangements, you are typically entitled to at least 90 days’ notice after foreclosure before being forced to move.
4. Do I get my security deposit back?
   The new property owner is responsible for your security deposit or must notify you how it will be transferred or returned.
5. Who can help me if I receive an eviction notice after foreclosure?
   Contact legal aid (see resource section), your local Michigan District Court, or your county’s housing agency for guidance.

Conclusion: Protecting Yourself During Foreclosure

• Michigan renters have a right to advance written notice and a legal eviction process following foreclosure.
• Your lease terms may protect you, and federal laws demand at least 90 days’ notice in most cases.
• Never leave your unit simply due to a foreclosure notice—court action is required for eviction.

If you receive any notices or have questions about your status, act promptly and seek official help. Staying informed and prepared is your best defense.

Need Help? Resources for Renters

• Michigan District Court Locator – Find your local courthouse for eviction and landlord-tenant issues.
• Michigan Department of Civil Rights – For discrimination complaints related to housing.
• Michigan Legal Help – Step-by-step guides and support for renters facing eviction and foreclosure-related problems.
• HUD Michigan – Tenant Rights – Federal guidance and state contacts for renters.

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1. United States Department of Housing and Urban Development. "Protecting Tenants at Foreclosure Act Guidance." 2024.
2. Michigan Legislature. "Michigan Truth in Renting Act (Act 348 of 1972)." 2024.
3. Michigan Courts. "Landlord-Tenant Court Forms." 2024.

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