Michigan HOA Lien Priority and Recording Requirements

Michigan HOA Lien Priority and Recording Requirements

Michigan does not have a state statute that grants homeowner association liens super priority status over first mortgages. Your association's lien for unpaid assessments sits behind the first mortgage but ahead of second mortgages, home equity lines of credit, and most judgment liens when you follow proper recording procedures. The Michigan Attorney General's office oversees consumer protection issues related to HOA collections, and Michigan courts apply common law property lien rules to determine priority disputes.

How Michigan Lien Priority Works

When a Michigan homeowner fails to pay assessments, your association can file a lien with the county register of deeds in the county where the property sits. The lien attaches to the real property and creates a legal claim that must be satisfied before the property can be sold with clear title. However, Michigan courts recognize the principle of first in time, first in right. A recorded first mortgage from 2018 takes priority over an HOA lien recorded in 2024, even if the association's governing documents say otherwise.

Your association's lien will be superior to any lien recorded after your assessment lien is filed. This includes second mortgages, mechanic's liens recorded later, and judgment liens from credit card companies or other creditors. If a homeowner takes out a home equity line of credit after you record your lien, your claim takes priority over that HELOC.

The practical impact is clear. When a foreclosing first mortgage holder takes title through foreclosure, your association's lien is extinguished. You lose the unpaid assessments that accrued before the foreclosure sale. When your association forecloses on its own lien, the first mortgage remains on the property, and the buyer at your foreclosure sale takes the property subject to that first mortgage.

Recording Your Lien in Michigan

To perfect your lien, you must record a notice of lien with the register of deeds in the county where the property is located. Michigan has 83 counties, and each county sets its own recording fee schedule. As of 2025, Wayne County charges $30 for the first page and $3 for each additional page. Oakland County charges $30 for the first page and $3 for each additional page. Washtenaw County uses the same fee structure. Before you record, confirm the current fee with the specific county.

Your notice of lien must include the legal description of the property, the name of the owner, the amount owed, and a statement that the lien is filed pursuant to your association's declaration of covenants. Michigan courts require that the lien describe the debt with reasonable certainty. A vague reference to amounts owed will not support foreclosure.

Once you record the lien, send a copy of the recorded document to the homeowner by certified mail. Michigan does not require this notice by statute, but your governing documents likely do, and providing notice protects your association in any dispute over due process.

Foreclosure Process and Timeline

Michigan associations can foreclose on a lien through judicial foreclosure or, if your declaration permits, through nonjudicial foreclosure by advertisement. Most associations use judicial foreclosure because Michigan's advertisement process is designed for mortgage foreclosures and requires strict compliance with notice and publication rules.

Judicial foreclosure requires filing a complaint in circuit court, serving the homeowner, and obtaining a judgment. The court will set a redemption period during which the homeowner can pay the full amount owed plus costs and redeem the property. Michigan's standard redemption period is six months for properties larger than three acres or 12 months if the amount owed is more than two thirds of the original debt. For properties three acres or smaller where the debt is less than two thirds of the original amount, the redemption period is six months.

A foreclosure case in Oakland County in 2019 took 14 months from the filing of the complaint to the sheriff's sale. The association spent $18,000 in legal fees to collect $12,000 in unpaid assessments. The foreclosure extinguished a second mortgage but left a $240,000 first mortgage on the property. The winning bidder at the sheriff's sale paid $15,000 and took title subject to the first mortgage.

What Happens When the First Mortgage Forecloses

When a first mortgage holder forecloses, your association's lien is wiped out. Michigan law does not require the foreclosing lender to pay your association for unpaid assessments that accrued before the foreclosure. Some associations attempt to negotiate a cash for keys agreement with the lender, offering to facilitate the eviction of occupants in exchange for payment of a portion of the unpaid assessments. This is a business negotiation, not a legal obligation.

After the foreclosure sale, the new owner, whether it is the lender through a credit bid or a third party purchaser, becomes responsible for assessments that accrue after the transfer of title. Your association cannot collect pre foreclosure assessments from the new owner. You must write off the old debt and begin a new ledger for the new owner.

Michigan courts have consistently held that an HOA cannot pursue the former owner personally for assessments that accrued before foreclosure unless the declaration creates personal liability. Most Michigan declarations do create personal liability, which means you can sue the former owner for a money judgment even after the property is lost to foreclosure. However, collecting on that judgment is often impractical if the owner has no other assets.

Recording Fees and County Variations

Michigan's 83 counties each set recording fees by resolution. The fee covers the cost of indexing, imaging, and storing the document in the county's land records system. As of 2025, most Michigan counties charge between $20 and $35 for the first page and $2 to $5 for each additional page. Some counties add a technology surcharge of $1 to $3 per document.

Wayne County, which includes Detroit, recorded more than 200,000 documents in 2024. The county's online portal allows you to submit documents electronically and pay by credit card. Oakland County offers a similar system. Smaller counties may require you to mail or hand deliver the lien notice to the register of deeds office.

Before you file a lien, call the register of deeds office or check the county website to confirm the current fee, accepted payment methods, and any requirements for formatting or notarization. Michigan law does not require notarization of an HOA lien notice, but some counties prefer it.

Protecting Your Association's Interest

Your first step is to record liens promptly. Do not wait until a homeowner owes six months or a year of assessments. Many Michigan associations record a lien after 90 days of nonpayment. Early recording establishes your priority date and signals to the homeowner that you are serious about collection.

Second, review your declaration to confirm that it creates a lien and specifies the procedure for enforcement. If your declaration is silent on liens, you may not have the authority to file one. Michigan courts will not grant you lien rights that are not in your governing documents.

Third, monitor foreclosure filings in your community. When you receive notice that a first mortgage holder has filed a foreclosure action, calculate the amount owed and decide whether to participate in the case. In some situations, you can file a request with the court to recover a portion of the surplus if the property sells for more than the mortgage debt. This is rare but possible.

Fourth, maintain detailed records of all assessments, late fees, interest, and collection costs. Michigan courts require you to prove the amount owed with specificity. A payment ledger, copies of invoices, and records of notices sent will support your case if the homeowner challenges the lien amount.

Consult your attorney for your specific situation before recording a lien or initiating foreclosure. Michigan's foreclosure process has strict notice and timing requirements, and a procedural error can void your foreclosure and expose your association to a counterclaim for wrongful foreclosure.

How Manorway Helps Michigan Boards Manage Liens

Manorway's AI assisted platform tracks homeowner payment status, generates lien notices, and stores copies of recorded documents in a central repository. When a homeowner falls behind on assessments, Manorway can flag the account and prompt your board to follow your collection policy. You can set reminders for lien recording deadlines, track the status of foreclosure cases, and maintain a complete audit trail of all collection actions.

Your board can use Manorway to document the decision to record a lien, approve the lien amount, and authorize payment of recording fees. When you keep all collection records in one platform, you reduce the risk of losing documents and create a transparent process that protects board members from personal liability claims. Manorway does not replace your attorney, but it helps you stay organized and consistent as you enforce your association's collection rights under Michigan law.