Quick Answer
Under MCL 559.208(2), an association's assessment lien foreclosure follows "the same manner as a foreclosure under the laws relating to foreclosure of real estate mortgages by advertisement or judicial action." Foreclosure by advertisement is governed by Chapter 32 of the Revised Judicature Act (MCL 600.3201 et seq.). A notice of lien must first be recorded and mailed at least 10 days before foreclosure begins.
Chapter 32 was written for mortgages, not association liens. Our reading is that some provisions, such as the notice, publication and sale rules, carry over by reference, while the redemption period is set separately in the Condominium Act as 6 months, or 1 month if abandoned. Because Chapter 32 has many sections we did not read, any real foreclosure should be handled by counsel.
At a Glance
| Item | Detail |
|---|---|
| Law/citation | MCL 559.208(2) (Condominium Act) incorporating MCL 600.3201 et seq. (Revised Judicature Act of 1961, 1961 PA 236) |
| Effective date | Chapter 32 provisions read here date from 1961 PA 236 (effective Jan. 1, 1963), with later amendments; 559.208 was last amended by 2002 PA 283 (immediate effect May 9, 2002) |
| Applies to | Condominium associations foreclosing an assessment lien by advertisement |
| Key sections | 559.208(1) to (3); 600.3201, 600.3204, 600.3208, 600.3212, 600.3216, 600.3236, 600.3240 |
| Remedy or penalty | Not applicable; this is a collection remedy. Money judgment is an alternative under 559.208(5) |
What the Law Says
The Condominium Act framework (MCL 559.208)
- Unpaid assessments with interest, collection and late charges, advances for taxes or liens, attorney fees, and fines "in accordance with the condominium documents" are a lien on the unit (subsection 1).
- The lien "may be foreclosed by an action or by advertisement by the association of co-owners in the name of the condominium project on behalf of the other co-owners" (subsection 1).
- A foreclosure "may not be commenced without recordation and service of notice of lien." The notice must give the legal description, name of the co-owner of record, and amounts due, exclusive of interest, costs, attorney fees and future assessments. It is recorded with the register of deeds and served by first-class mail "at least 10 days in advance of commencement of the foreclosure proceeding" (subsection 3).
- "The redemption period for a foreclosure is 6 months from the date of sale unless the property is abandoned, in which event the redemption period is 1 month from the date of sale" (subsection 2).
- The association may bid at the sale and acquire the unit unless the master deed or bylaws prohibit it (subsection 4).
Chapter 32 provisions we read
- 600.3201: a mortgage with a power of sale "upon default being made in any condition" may be foreclosed by advertisement in the cases and manner the chapter specifies.
- 600.3204: lists preconditions, including that the power of sale became operative by default, that no action to recover the debt is pending or unsatisfied, that the mortgage was properly recorded, and that the foreclosing party owns the debt or is the servicer. Because it speaks of a mortgage, how it applies to an association lien is a question for counsel.
- 600.3208: notice published "for 4 successive weeks at least once in each week" in a newspaper published in the county, and a true copy posted in a conspicuous place on the premises "within 15 days after the first publication."
- 600.3212: required notice contents, including the amount claimed, a property description, redemption period, and a military service member statement for a residential mortgage, and the attorney's name and contact information.
- 600.3216: "The sale shall be at public sale, between the hour of 9 o'clock in the forenoon and 4 o'clock in the afternoon, at the place of holding the circuit court" in the county, made by the sheriff or an appointed person, "to the highest bidder."
- 600.3236: if the property is not redeemed, the sheriff's deed becomes operative and vests the mortgagor's title; a valid lien created before the foreclosed lien took effect is not prejudiced by the sale.
- 600.3240: redemption periods for mortgage foreclosures vary by property type (for example 6 months for some residential and for multifamily over 4 units, 1 month if abandoned, 1 year otherwise). Those periods are for mortgages. For an association lien, 559.208(2) states its own period.
What This Means in Practice
Boards
The sequence the statutes show is: assessment delinquency, notice of lien recorded and mailed, then at least 10 days later the foreclosure may begin, then published notice for 4 weeks, a sale at the county circuit court location, and a redemption period. Our reading: counsel decides which Chapter 32 steps apply to an association lien and how, since the chapter's text refers to mortgagors and mortgage terms.
A foreclosure by advertisement does not wipe out a prior first mortgage in the way a first-mortgage foreclosure does. Under 559.208(1), past-due assessments evidenced by a recorded notice of lien have priority over a first mortgage recorded after the notice. See our page on the assessment lien.
Owners
An owner facing foreclosure has a stated redemption period of 6 months from sale, or 1 month if abandoned. During that period, 559.208(8) makes the owner and later purchasers liable for assessments that come due before the redemption period ends. Owners should speak with counsel quickly about payoff amounts.
What we did not confirm
- Which other Chapter 32 sections (for example 3205 through 3207, the notice to the mortgagor, or 3228 through 3235 on the sale and deed) apply to an association lien. We did not read them.
- How courts have treated a mismatch between 559.208(2) and the mortgage-based wording of Chapter 32.
- Whether other limits apply for military service members. The mortgage notice form refers to it; we did not analyze association liens.
Timeline
| Step | Statutory timing |
|---|---|
| Notice of lien recorded and mailed | Before foreclosure; mailed at least 10 days before commencement (559.208(3)) |
| Published notice | 4 successive weeks, at least once each week (600.3208) |
| Posting on premises | Within 15 days after the first publication (600.3208) |
| Sale | Public sale between 9 a.m. and 4 p.m. at the circuit court location (600.3216) |
| Redemption | 6 months from sale, or 1 month if abandoned (559.208(2)) |
Related Michigan Law
- Assessment lien and foreclosure (MCL 559.208)
- First-mortgage foreclosure and prior assessments
- Resale statement and unpaid assessments
- HOA violation enforcement in Michigan
Board Checklist
- Check that your bylaws authorize the lien and fines you intend to include.
- Prepare the notice of lien with legal description, owner of record and amounts due.
- Record it and mail it first class, keeping proof of the mailing date.
- Wait at least 10 days before commencing foreclosure.
- Have counsel confirm which Chapter 32 steps apply and calendar publication and sale dates.
- Decide in advance whether the association will bid at the sale.
- Track the redemption deadline and amounts coming due during it.
Frequently Asked Questions
Can a Michigan condominium association foreclose without going to court?
Yes. MCL 559.208(1) allows foreclosure "by an action or by advertisement." Advertisement follows the mortgage-by-advertisement procedures.
What must happen before foreclosure begins?
A notice of lien must be recorded and mailed first class at least 10 days before the foreclosure proceeding starts (559.208(3)).
How long is notice published?
Under 600.3208, 4 successive weeks, at least once in each week, in a county newspaper, plus posting a copy on the premises within 15 days after the first publication.
Where is the sale held?
At public sale between 9 a.m. and 4 p.m. at the place of holding the circuit court in the county (600.3216).
How long is redemption?
MCL 559.208(2) says 6 months from the sale date, or 1 month if the property is abandoned.
Can the association buy the unit at the sale?
Yes, unless the master deed or bylaws prohibit it (559.208(4)).
Does the association have to foreclose to collect?
No. A money judgment action may be maintained without foreclosing or waiving the lien (559.208(5)).
Where This Comes From
We read MCL 559.208 and MCL 600.3201, 600.3204, 600.3208, 600.3212, 600.3216, 600.3236 and 600.3240 on the Michigan Legislature website, current through PA 114 of 2026 (559.208 as rendered October 5, 2026 on the site). We did not read the other sections of Chapter 32. Official site: MCL 559.208.
<h2>Where We Stand</h2><p><strong>Our position: we support the lien and foreclosure tools as a last resort.</strong> Associations need a reliable way to collect assessments that fund shared expenses. We urge early outreach and payment plans first, since collection works best before liens are needed. This is Association Property Managers' operating view as a management company, separate from the legal summary above, and it is not legal advice.</p>
How APM Helps
Association Property Managers manages condominium and HOA communities across Michigan from our East Lansing office, with flat, published pricing. See our Michigan service area, browse every Michigan state-law guide, or request a free proposal. Laws and documents differ by community, and we review your master deed and bylaws when we build your proposal.
Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed Michigan attorney before acting.
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