Can a Michigan HOA or Condo Foreclose Over Dues?

Michigan's lien analysis is a tale of two structures. Condos and site condos run on a powerful statutory lien under the Condominium Act. Traditional plat HOAs rely on the recorded covenants. Both can ultimately foreclose, but the framework — and what gets included — is different. For your specific situation, a licensed Michigan attorney is the right resource. This is general information, not legal advice.

Condos and site condos: MCL 559.208

Under MCL 559.208, "[s]ums assessed to a co-owner by the association of co-owners which are unpaid together with interest on such sums, collection and late charges, advances made by the association for taxes or other liens to protect its lien, attorney fees, and fines constitute a lien upon the unit."

That inventory is unusually broad. Michigan's statutory lien expressly reaches:

• Unpaid assessments
• Interest on the unpaid amounts
• Collection and late charges
• Advances made by the association to pay taxes or protect against other liens
• Attorney fees
• Fines

The inclusion of fines is particularly distinctive — many states' statutes either exclude fines from the lien (Maryland) or are silent on the point. Michigan's statute names them expressly.

Lien priority

The lien is "prior to all other liens" except:

• Tax liens in favor of state or federal taxing authorities
• Sums unpaid on a first mortgage of record

But Michigan attaches a timing twist that gives the association meaningful leverage: "past due assessments evidenced by a notice of lien recorded have priority over a first mortgage recorded subsequent to the recording of the notice of lien." Recording timing matters.

Notice and foreclosure procedure

Before the association can begin foreclosure:

• A notice of lien must be recorded in the office of the register of deeds in the county where the condominium project is located
• The notice must be served on the delinquent co-owner by first-class mail at least 10 days before the foreclosure proceeding commences

Michigan condo liens may be foreclosed by advertisement (the nonjudicial Michigan process) or by judicial action. The redemption period after foreclosure is generally six months, though it may be shortened to one month if the property is determined to be abandoned.

Traditional plat HOAs

For plat HOAs, there is no Chapter 559 equivalent. Whether and how the association can record a lien and foreclose depends almost entirely on the recorded CC&Rs. The CC&Rs must expressly authorize the lien and the procedure, and Michigan courts will scrutinize whether the documents in fact grant the lien claim the association is asserting.

What people generally do

In a Michigan assessment-debt situation, a few points commonly matter:

• Whether the community is a site condo (Chapter 559 applies) or a plat HOA (covenants apply).
• A written payoff and the association's records show what is actually owed.
• For site condos and condos, whether the components of the lien match the statutory categories in MCL 559.208.
• Disputed fines and undisputed assessments are treated separately — though Michigan's lien reaches both.
• The 10-day pre-foreclosure notice and the 6-month redemption window matter.
• A licensed Michigan attorney is the resource early, while options remain open.

Sources

• MCL 559.208 — Assessment lien; priority; foreclosure
• MCL Act 59 of 1978 — Michigan Condominium Act (full)