Civil procedure: foreclosure; distribution of proceeds from mortgage foreclosure auctions; modify. Amends secs. 3240 & 3252 of 1961 PA 236 (MCL 600.3240 & 600.3252). TIE BAR WITH: HB 5152’25
Key claim: HB 5153 proposes to modify how proceeds from mortgage foreclosure auctions are distributed by amending sections 3240 and 3252 of Michigan’s 1961 PA 236.
Abstract
(HB5153 · 103rd Legislature) Civil procedure: foreclosure; distribution of proceeds from mortgage foreclosure auctions; modify. Amends secs. 3240 & 3252 of 1961 PA 236 (MCL 600.3240 & 600.3252). TIE BAR WITH: HB 5152’25 Latest action (2026-07-02): Referred To Committee On Housing And Human Services
Why this matters
Foreclosure sale proceeds distribution rules determine who gets paid — and in what order — when a mortgaged home is auctioned, directly affecting homeowners’ recovery of any surplus equity as well as junior lienholders and purchasers. Restructuring MCL 600.3240 and 600.3252 alongside the companion HB 5152 signals a coordinated overhaul of Michigan’s foreclosure-by-advertisement payout mechanics, with real dollar consequences for defaulting borrowers and secondary creditors.