Trying to decide whether to list your house the conventional way, negotiate a short sale, or wait out foreclosure? You’re not alone. Each route carries very different timelines, costs, credit impacts, and stress levels—especially here in Michigan, MI, where home prices have risen 4.7 percent year-over-year and the typical house still goes under contract in just 23 days. redfin.com In this guide we’ll unpack:
- How each sale type works in Michigan.
- Real-world numbers—local days on market, discount averages, and foreclosure rates.
- Hidden costs and credit fallout most blogs forget to mention.
- A cash-sale alternative through Speedy Sale Home Buyers that lets you skip the drama entirely.
By the end, you’ll know exactly which path best protects your timeline, finances, and peace of mind.
What’s the Differences Between Traditional Sale vs Short Sale and Foreclosure?
| Question | Traditional Sale | Short Sale | Foreclosure |
|---|---|---|---|
| Why it happens? | Homeowner chooses to sell | Owe more than home value | Missed mortgage payments |
| Avg. timeline (MI) | 23–45 days to accept offer + 30–45 days to close | 90–180 days (lender approval) | 6-month redemption + auction; total 8–12 months |
| Typical discount | List-to-sale gap ≈ 2–5 % | 10–25 % below market (lender recoups loss) | 15–30 % below market (sold “as-is”) |
| Who pays closing costs? | Negotiable | Usually buyer + lender fees | Buyer or bank (REO) |
| Credit impact | Minimal | 50–100 pt drop typical | 100–160 pt drop + stays 7 yrs |
Recent Foreclosure RatesForeclosure Activity
Traditional Home Sale in Michigan
A “traditional” listing through an agent remains the default path when you have equity and time. Michigan’s median price now sits near $284.8 k, and well-staged homes here average 23 DOM. redfin.com
Pros
- Maximum exposure = highest price.
- Buyer pays mortgage, so cash-in at closing.
Cons
- Showings, repairs, and inspection negotiations.
- 6–10 percent of price lost to agent commissions and seller concessions.
- If buyer’s financing fails, the clock resets.
Local twist: Tight inventory means backups sometimes appear, but high 7 percent mortgage rates have led to 73k delistings nationwide—sellers who simply gave up. wsj.com
Short Sales in Michigan
If you’re underwater—owing more than your home is worth—you can ask your lender to accept a payoff “short” of the balance. The bank avoids the greater cost of foreclosure; you avoid a credit-bludgeoning.
- Michigan ranks 13 th in foreclosure incidence (1 in 3,918 units), so lenders increasingly view short sales favorably. attomdata.com
- Expect 3–6 months for bank approval, longer if multiple lienholders.
- Average price cuts of 10–25 percent versus retail comps (ATTOM distressed-sales averages). attomdata.com
Hidden fees: Second-mortgage holders often demand cash to release their lien, and HOA arrears, tax liens, or utility balances roll into closing.
When it makes sense: You have steady income, but negative equity, and still need to relocate fast—yet want to dodge a full foreclosure mark.
Foreclosures in Michigan
Miss three mortgage payments and your lender files a notice of default. After auction, Michigan law grants a six-month redemption period (12 months for larger agricultural tracts), during which you can still reclaim or sell the property. michigan.govlegislature.mi.gov
- Zombie foreclosures—homes abandoned before completion—jumped 51 % statewide in early 2025. the-sun.com
- Lenders repossessed 1,432 Michigan homes in the first half of 2024, 5th-most nationwide. attomdata.com
Pros for buyers
- Deep discounts (often 15–30 %).
- Clear title once REO is recorded.
Cons for owners
- 100–160-point credit blow.
- Legal fees, court notices, public auctions.
- Stress of eviction if you stay beyond redemption.
NOTE: Auctions require all-cash or hard-money proof; inspections are often barred, and redemption can void your purchase.
Example Scenarios
Equity & Time
Sarah owns a Midtown Michigan bungalow with 40 percent equity. She chooses a traditional listing, spends $7 k on paint and staging, and nets top-of-market in 28 days.
Underwater but Employed
Marcus bought at the 2022 peak; now his condo is $30 k underwater. He negotiates a short sale; the bank waives the deficiency and he rents for a year to heal his credit.
Imminent Foreclosure
Tina lost her job and is 90 days late. Rather than wait for auction, she accepts a cash offer from Speedy Sale Home Buyers, closes in 14 days, pockets $5 k for moving costs, and avoids a foreclosure stamp.
Why a Cash Offer Often Wins
| Headache | Traditional | Short Sale | Foreclosure | Cash to Speedy Sale Home Buyers |
|---|---|---|---|---|
| Repairs | Seller pays | Seller, often discounted | Buyer assumes | None—sell as-is |
| Showings | Multiple | Rare | None | One quick walk-through |
| Timeline | 60–90 days | 90–180 days | 8–12 months | 7–21 days |
| Fees | 6–10 % | 8–12 % | Legal + arrears | 0 % |
| Credit Impact | Neutral | –50-100 pts | –100-160 pts | Neutral |
Because Speedy Sale Home Buyers buys with its own funds, you skip lender approvals, appraisals, and endless contingencies. Close on your schedule—sometimes in as little as a week—and move on with cash in hand.
Frequently Asked Questions
How long does a short sale really take in Michigan?
Plan on 90–180 days. Lender backlogs and multiple liens lengthen the process; having a complete hardship package speeds approval.
What is the Michigan foreclosure redemption period?
Six months for most residential properties; 30 days if the home is abandoned, and 12 months for farms over three acres. michigan.gov
Can I sell my house after foreclosure starts?
Yes—right up until the sheriff’s sale and even during redemption—but you’ll need a cash buyer who can close fast. Speedy Sale Home Buyers specializes in these time-sensitive deals.
Do banks finance foreclosure purchases?
Rarely. Expect to pay cash or use a hard-money loan, then refinance after repairs.
Should I Sell My House For Cash?
Look beyond the headline price. Calculate your Stress-Adjusted Net—sale proceeds minus time value, repair spend, holding costs, and emotional drag. Many homeowners find a 5–10 percent higher sticker price on a traditional sale evaporates when you tally two mortgage payments, utilities, and repair overruns. A guaranteed cash number today often pencils out better.
Contact Us Today!
Traditional sales, short sales, and foreclosures each have a place in Michigan’s market. Traditional listings unlock full equity when you have time and a move-in-ready property. Short sales offer a grace-filled exit if you’re underwater but proactive. Foreclosures remain a last resort—punishing credit and prolonging stress.
If speed, certainty, and simplicity top your wish list, a direct cash sale to Speedy Sale Home Buyers combines the best of all worlds: zero repairs, no agent fees, and closing on the date you choose.
Ready for a no-obligation cash offer?
Call Speedy Sale Home Buyers today at (313) 552-8608 or fill out the form. We’ll run the numbers, show your options, and let you decide—no pressure, just solutions.