Macomb County Michigan: Why Condo Association Liens Can Survive Your Foreclosure Purchase

The $14,000 Assessment That Appeared After Closing

An investor purchased a two-bedroom condominium unit at a Macomb County Sheriff's Sale in Clinton Township for $87,500 in late 2023. The property had been foreclosed by the first mortgage holder after the former owner defaulted. The investor ran a standard title search, confirmed the mortgage was in first position, and assumed the foreclosure would extinguish all junior liens — including the condominium association's claim for unpaid assessments.

Three weeks after recording the Sheriff's Deed, the investor received a demand letter from the condominium association's attorney. The association claimed $14,200 in unpaid assessments, late fees, legal costs, and interest — and asserted that a portion of this debt survived the foreclosure sale and remained attached to the unit. The investor's title insurance policy excluded condominium assessments. The association filed a lien enforcement action in Macomb County Circuit Court within sixty days.

This scenario plays out regularly in Macomb County, where condominium developments comprise a significant portion of the residential housing stock in communities like Sterling Heights, Shelby Township, and Clinton Township. Investors who understand mortgage lien priority but overlook Michigan's specific condominium assessment statute find themselves writing checks they never anticipated.

Michigan's Condominium Act: The Six-Month Super-Lien Explained

Michigan's treatment of condominium assessment liens is governed by the Condominium Act, specifically MCL 559.208. This statute creates a lien priority scheme that deviates from the standard "first in time, first in right" recording principle that governs most real property liens.

Under MCL 559.208(1), a condominium association has a lien on each unit for unpaid assessments from the time the assessment becomes due. This lien is automatic — the association does not need to record anything for the lien to attach. However, the statute distinguishes between the lien's existence and its priority relative to other encumbrances.

The critical language appears in MCL 559.208(2), which establishes what practitioners call the "super-lien" or "limited priority" provision. The statute provides that the association's lien for assessments that came due during the six months immediately preceding the institution of foreclosure proceedings has priority over a first mortgage — but only to the extent of that six-month amount. Assessments beyond the six-month window are subordinate to the first mortgage and are extinguished when the mortgage forecloses.

Here is the practical math: If monthly assessments are $350 and the mortgagee files its foreclosure complaint, the association's super-lien covers $2,100 (six months multiplied by $350). This $2,100 survives the foreclosure and transfers to the new owner. Any assessments that accrued before that six-month window are wiped out by the foreclosure — but they may have accrued for years, creating the illusion of a massive debt that the investor assumes disappears entirely.

The confusion arises because the total debt owed by the former owner might be $25,000 in unpaid assessments, but only $2,100 of that has super-lien priority. Investors see the large number, assume the foreclosure eliminates it, and fail to account for the smaller — but still substantial — amount that survives.

Why the "Six Months" Calculation Is More Complicated Than It Appears

The statute's reference to "six months immediately preceding the institution of an action to enforce the lien" creates an ambiguity that Michigan courts have addressed inconsistently. The question is: What event triggers the six-month lookback period?

For mortgage foreclosures conducted through judicial proceedings in Macomb County Circuit Court, the triggering event is relatively clear — it is the filing of the foreclosure complaint. The six-month period runs backward from that filing date.

However, Michigan permits non-judicial foreclosure by advertisement under MCL 600.3201 et seq., which is the more common method used by institutional lenders. In a foreclosure by advertisement, there is no "complaint" filed. Courts have generally interpreted the triggering event as the date the first notice of foreclosure is published or the date the foreclosure sale is scheduled, but this interpretation is not uniform.

The practical effect for Macomb County investors: You cannot simply look at the Sheriff's Sale date and count backward six months. You need to identify when the foreclosing lender initiated the foreclosure process, which may have occurred months before the sale. If the lender published its first notice of foreclosure in January but the sale did not occur until July, the super-lien period might cover assessments from July through December of the prior year — not the six months immediately before the July sale.

Additionally, MCL 559.208 covers more than just regular monthly assessments. Special assessments levied for capital improvements, emergency repairs, or litigation expenses also fall within the statute's scope. If the association levied a $5,000 special assessment three months before the foreclosure action commenced, that special assessment has super-lien priority and survives the foreclosure.

Macomb County's Condominium Landscape Amplifies the Risk

Macomb County contains hundreds of condominium and site condominium developments, many built during the 1970s through 1990s housing expansion in communities like Warren, Roseville, and Mount Clemens. These aging developments frequently face deferred maintenance issues, leading to special assessments for roof replacements, parking lot repairs, and infrastructure upgrades.

The Macomb County Register of Deeds maintains recorded documents including condominium master deeds, amendments, and recorded liens. However, an association's lien under MCL 559.208 attaches automatically upon default — the association is not required to record a lien notice for the lien to exist. Many associations do record lien notices as a matter of practice (and their governing documents may require it), but the absence of a recorded lien does not mean no lien exists.

This creates a gap in standard title searches. A title examiner reviewing the Macomb County land records will find recorded mortgages, recorded judgments, recorded tax liens, and recorded condominium documents. But an unrecorded assessment lien — which is valid and enforceable under MCL 559.208 — will not appear in the chain of title.

Investors purchasing at Sheriff's Sales conducted by the Macomb County Sheriff's Office (held at the Macomb County Circuit Court building in Mount Clemens) often perform their due diligence exclusively through recorded document searches. They confirm the foreclosing mortgage is in first position, verify there are no senior tax liens, and proceed to bid. The condo assessment lien hiding off-record becomes apparent only after the sale.

The Interplay Between Assessment Liens and Sheriff's Sale Procedures

Macomb County Sheriff's Sales follow Michigan's statutory foreclosure process. When a mortgage holder obtains a judgment of foreclosure in circuit court, the property is scheduled for sale and the Sheriff's Office conducts the auction. The Sheriff's Deed conveys the interest of the foreclosed owner, subject to any liens that were not extinguished by the foreclosure.

The Sheriff's Deed itself does not specify which liens survive. The deed simply recites that the property was sold pursuant to the foreclosure judgment. Determining what survives requires independent legal analysis.

Condominium assessment liens with super-lien priority survive the foreclosure because they are, by statute, senior to the mortgage that was foreclosed. The foreclosure extinguishes the mortgage and all liens junior to it, but it cannot extinguish liens that are senior. The six-month super-lien portion of the condo assessment occupies this senior position.

The association's remaining claim — assessments outside the six-month window — is junior to the mortgage and is extinguished. However, some associations misstate their priority position or include amounts in their demand that should have been wiped out. This leads to disputes about the actual amount owed.

Furthermore, assessments that accrue after the foreclosure proceeding commences but before the sale closes occupy an uncertain position. If four months pass between the filing of the foreclosure complaint and the Sheriff's Sale, do the assessments that came due during those four months have super-lien priority? The argument is that these assessments were not part of the six months "immediately preceding" the institution of the action — they accrued after the action was instituted. Michigan courts have not definitively resolved this issue, and association attorneys often take aggressive positions that favor their clients.

What TitlePin Would Have Shown

A TitlePin report for a Macomb County condominium unit generates a dedicated section analyzing condominium-specific encumbrances. The report identifies whether the property is part of a condominium regime by cross-referencing the legal description against recorded master deeds and condominium subdivision plans in Macomb County.

Once a property is flagged as a condominium unit, TitlePin's analysis includes:

Association Identification and Contact Information: The report provides the name of the condominium association and, where available, the registered agent or management company. This allows investors to contact the association directly before bidding to request a ledger showing the current assessment balance, the date of the last payment, and any special assessments levied.

Recorded Lien Notices: Although MCL 559.208 does not require recording, many associations record lien notices as a precaution. TitlePin surfaces all recorded lien documents referencing the unit, including partial releases, lien amendments, and satisfactions. The absence of a recorded lien is explicitly noted, with a warning that unrecorded assessment liens may still exist.

Foreclosure Timeline Analysis: TitlePin's report incorporates the foreclosure filing date or first publication date (for foreclosures by advertisement) to help investors calculate the super-lien window. The report identifies when the foreclosure action commenced based on court records and publication records, providing a reference point for the six-month lookback calculation.

Special Assessment Flag: If the condominium's recorded documents include amendments authorizing special assessments, the report flags this as a risk factor. Investors are alerted that special assessments levied within the super-lien window will survive foreclosure.

For the Clinton Township investor described above, a TitlePin report would have identified the property as a condominium unit, provided the association's contact information, and flagged the foreclosure filing date as November 2022 — meaning the six-month super-lien covered assessments from May through October 2022. A pre-auction call to the association would have revealed monthly assessments of $380 plus a $2,500 special assessment levied in August 2022 for parking lot resurfacing. The investor would have known before bidding that approximately $4,780 in assessment debt would survive the foreclosure, allowing for an adjusted bid or a decision to pass on the property.

The Post-Sale Collection Process in Macomb County

Condominium associations in Michigan have robust collection remedies under MCL 559.208 and MCL 559.212. Once an investor takes title through a Sheriff's Sale, the association's surviving lien remains attached to the unit. The association may:

Demand Payment: Most associations begin with a demand letter, often prepared by their attorney, asserting the amount claimed. Investors should scrutinize these demands carefully — associations frequently overstate the surviving amount by including assessments that should have been extinguished.

File a Lien Foreclosure Action: The association can file a lawsuit in Macomb County Circuit Court to foreclose its assessment lien. This is a judicial proceeding that, if successful, results in a judgment and potential Sheriff's Sale of the investor's interest. Filing fees, attorney fees, and costs are added to the debt under most condominium bylaws.

Place a Lien on Record: Even if a lien was not previously recorded, the association will typically record a lien notice after the new owner takes title, clouding the title and preventing resale or refinancing until resolved.

Assess Ongoing Fees: The investor becomes responsible for current assessments as of the date they take title. Failure to pay current assessments generates new lien liability that is entirely separate from the surviving super-lien debt.

Investors who ignore association demands face escalating costs. Attorney fees in condominium collection actions in Macomb County typically range from $3,000 to $8,000, all of which become part of the lien obligation under most condominium bylaws that include fee-shifting provisions.

Strategies for Macomb County Investors

Investors targeting condominium foreclosures in Macomb County should implement a pre-auction protocol specific to condo units:

Request a Resale Certificate or Estoppel Letter: Under MCL 559.207, associations must provide certain information to prospective purchasers upon request. While this statute is designed for traditional sales, some associations will provide ledger information to foreclosure purchasers who request it. Be prepared to pay a fee ($100–$300 is common) and to wait several days for a response.

Calculate the Super-Lien Window Yourself: Identify the foreclosure commencement date from court records (available through Macomb County Circuit Court's online case search) or from published notices (available through legal newspapers or services that track foreclosure publications). Count backward six months from that date and estimate the assessment exposure.

Budget for the Unknown: If the association is non-responsive before the auction, assume a worst-case scenario. Estimate monthly assessments based on comparable condos in the same development (this information is sometimes available through real estate listings or HOA review sites) and assume there is a special assessment equal to three months of regular assessments. Factor this into your maximum bid.

Review the Master Deed and Bylaws: Recorded condominium documents in Macomb County include provisions about assessments, collection procedures, and fee-shifting. Understanding these documents reveals the association's collection powers and potential cost exposure.

Negotiate Post-Sale: Associations often prefer negotiated payment over protracted litigation. Some will accept a discounted payoff, especially if the investor pays promptly. Others offer payment plans. The investor has leverage because the association would incur attorney fees and delays to foreclose — and might end up with the property back anyway if the investor walks away.

Key Takeaways

• Michigan's MCL 559.208 grants condominium associations a six-month super-lien that survives first mortgage foreclosure, covering regular and special assessments that came due in the six months before foreclosure proceedings commenced
• The super-lien amount does not appear on the Sheriff's Deed and may not be recorded anywhere in Macomb County's land records, creating a gap in standard title searches
• Macomb County's high density of aging condominium developments increases the likelihood of special assessments for deferred maintenance, which can significantly increase the super-lien amount beyond routine monthly assessments
• Investors must independently calculate the foreclosure commencement date — which may differ from the Sheriff's Sale date by many months — to determine the super-lien window accurately
• Post-sale association collection actions in Macomb County Circuit Court add substantial attorney fees to the lien obligation, making early resolution significantly cheaper than litigation

Sources

• Michigan Condominium Act, MCL 559.101 et seq., particularly MCL 559.208 (assessment liens and priority)
• Michigan foreclosure by advertisement statutes, MCL 600.3201 et seq.
• Macomb County Circuit Court, case search and foreclosure docket (16th Judicial Circuit Court, Mount Clemens)
• Macomb County Register of Deeds, recorded document search for condominium master deeds, amendments, and lien notices
• Michigan Court of Appeals decisions interpreting MCL 559.208 lien priority, including Tuscan Villas Condominium Ass'n v. Farmers Insurance Exchange (unpublished but illustrative of super-lien calculation disputes)
• Macomb County Sheriff's Office, Sheriff's Sale procedures and deed recording requirements