Mortgage Foreclosure Auction Proceeds Distribution

Current understanding

Section 3208 of the Revised Judicature Act (1961 PA 236, MCL 600.3208) governs mortgage foreclosure by advertisement procedures, including how proceeds from foreclosure sales are handled. HB 5152 (103rd Legislature) would amend section 3208 and add new sections 3214 and 3222 to modify how proceeds from mortgage foreclosure auctions are distributed. The bill is tie-barred to HB 5153 and has passed one chamber; the specific distribution mechanics and priority of claims on surplus proceeds remain to be recorded from the enrolled text.

Evidence log

• 2026-06-24 — Civil procedure: foreclosure; recording of deed; modify. Amends secs. 3232 & 3240 of 1961 PA 236 (MCL 600.3232 & 600.3240).: Cross-reference: HB 5046 (passed one chamber) amends adjacent Revised Judicature Act foreclosure sections 3232 & 3240 governing recording of the foreclosure deed — companion procedural changes to the same foreclosure-by-advertisement framework this page covers (secs. 3208/3214/3222). (novelty: 2)
• 2026-07-01 — Civil procedure: foreclosure; distribution of proceeds from mortgage foreclosure auctions; modify. Amends sec. 3208 of 1961 PA 236 (MCL 600.3208) & adds secs. 3214 & 3222. TIE BAR WITH: HB 5153’25: cross-connection with foreclosure-by-advertisement-virtual-sales: Both amend MCL 600.3208 (Revised Judicature Act foreclosure-by-advertisement provisions) in the same session — one enabling virtual sales, the other restructuring proceeds distribution. (novelty: 2)

Open questions

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