Michigan HOA & Condo Assessment Collections: A Guide for Association Boards

Michigan's winters test buildings. Freeze-thaw cycles crack pavement. Ice dams damage roofs, and heating systems run hard for months. That makes reserve funding and timely assessment collection more than routine—it's what keeps community association facilities from falling apart. Whether you manage a Detroit condo, a lakefront association in Traverse City, or a suburban HOA in Grand Rapids, you need to understand how Michigan law handles delinquent assessments. The rules here differ from neighboring states in important ways.

What the Money Pays For

Assessment dollars go toward everything a community shares:

• Common areas—landscaping, pools, clubhouses, parking lots, lobbies
• Building systems—elevators, fire suppression, shared HVAC equipment
• Utilities—common area electric and gas, sometimes individual unit utilities
• Property taxes—on common elements the association owns
• Insurance—master policy coverage for the association
• Reserves—set aside for major repairs: roof replacement, repaving, equipment upgrades

Special assessments handle the big-ticket items that exceed reserves. In Michigan, where snow removal costs can spike, pipes freeze, and salt deteriorates concrete, having money in reserves isn't optional. Delinquent owners put that financial cushion at risk.

Michigan's Legal Structure

Michigan treats condos and HOAs differently:

What Goes in the Lien

Michigan condo associations can include:

• Delinquent assessments—regular and special
• Interest—as your governing documents authorize
• Late charges—per your condominium documents
• Collection costs—expenses incurred pursuing the debt
• Attorney's fees—reasonable amounts for collection efforts
• Fines—as your documents allow
• Advances—if the association paid taxes or other liens to protect its interest

Recovering these costs from delinquent owners keeps association reserves available for their intended purpose.

Where Michigan Differs: No Super-Lien

 Michigan does not give associations a "super-lien" that jumps ahead of first mortgages.

Under MCL 559.208, condo liens have priority over everything except:

• State and federal tax liens
• First mortgages recorded before the association recorded its lien

Your association lien is given priority over junior mortgages, home equity lines, judgment liens, and anything recorded after your lien was filed.

Foreclosure Options

When demand letters, liens and payment plans fail, Michigan associations can foreclose.

Judicial Foreclosure

Filing in circuit court puts a judge in charge. Advantages include:

• Court oversight throughout
• Ability to pursue a deficiency judgment
• Clear resolution of competing claims
• Procedural certainty

Nonjudicial Foreclosure (By Advertisement)

MCL 559.208 permits "foreclosure by advertisement"—the same process used for mortgage foreclosures. Requirements:

• Your governing documents must authorize this remedy
• The lien must be recorded in the county register of deeds
• You must follow notice requirements precisely

This approach moves faster and costs less than judicial foreclosure.

Notice Requirements

Before foreclosing, Michigan requires:

• Recording the lien with the register of deeds
• Including the legal description, owner name, and amounts owed
• Sending written notice by first-class mail at least 10 days before starting foreclosure

Note on fines: While fines can be part of a lien, talk to counsel before foreclosing on a lien that's mostly fines with minimal unpaid assessments. Courts may scrutinize these differently.

The Redemption Period

After a foreclosure sale in Michigan, the former owner doesn't lose the property immediately. They get a redemption period—time to pay everything owed and reclaim title.

• Standard period: Six months from the sheriff's sale
• Abandoned property: One month if the property qualifies as abandoned

During redemption, the former owner typically keeps possession. If they don't redeem, title passes to the purchaser after the period expires.

When Banks Foreclose

This is where Michigan's lack of a super-lien really hurts:

• When a lender forecloses, they become responsible for assessments starting from the date of the sheriff's sale
• Assessments that accrued before the sale? The bank generally owes nothing on those

The association may lose the ability to collect pre-foreclosure delinquencies entirely. This makes prompt collection action essential—waiting until a bank forecloses often means writing off the debt.

Owner Protections

Notice Before Enforcement

Written notice must precede lien recording and foreclosure. Follow whatever your documents require regarding content, timing, and delivery.

Opportunity to Cure

Owners can pay everything owed—assessments, fees, interest, costs—to stop foreclosure proceedings before they conclude.

Procedural Requirements

Whether going judicial or nonjudicial, proper procedures matter. Courts expect associations to follow the rules before granting relief.

Time Limits

Michigan gives associations six years to pursue contract-based claims, which typically covers assessment obligations. Don't wait.

Delaying collection leads to:

• Potentially losing the ability to collect older amounts
• Larger balances that become harder to recover
• Increased burden on owners who do pay

How We Work

The Rickel Law Firm has been in business since 1899. We've seen Michigan's real estate cycles and understand what works here.

For Michigan associations, we provide:

• No out-of-pocket expense in most cases. Our fees and costs are typically applied to the delinquent owner's account, so association reserves usually stay untouched.
• Online access. ONYX gives board members and managers access to every case—status, payments, progress—available 24/7.
• We keep it professional. Delinquent owners are still your neighbors. We pursue collections in step with state laws while treating delinquent owners with respect— this produces better results and keeps community relationships intact.
• Michigan know-how. From the Condominium Act's requirements to nonjudicial foreclosure procedures and redemption periods, we know Michigan's rules.

Moving Forward

Every month of unpaid assessments places a burden on owners who do pay. Maintenance gets deferred. Reserves fall short, and the community falls into decline while delinquent owners shun their obligation. Don't use funding from people who pay on time to collect from people who don't!   If your Michigan association has delinquent accounts, contact Rickel Law for a free consultation. We'll explain the process and answer your questions.

Call The Rickel Law Firm at 855.752.7156 or reach out through our website.