Michigan Condominium & HOA Assessment Collection Rules

Under the Michigan Condominium Act, MCL 559.208 makes unpaid assessments, interest, late fees, advances, attorney fees, and fines "a lien upon the unit" owned by the co-owner. The association may foreclose that lien "by an action or by advertisement" in the same manner as a real-estate mortgage. Before foreclosing it must record a notice of lien with the county register of deeds and mail it to the delinquent co-owner at least 10 days beforehand. The redemption period is 6 months from the sale, shortened to 1 month if the unit is abandoned, and a receiver may be appointed to collect rent. Non-condominium HOAs have no equivalent statute and rely entirely on their recorded declaration and MCL 450.2101 et seq.

Unpaid condo assessments become a foreclosable lien enforced like a mortgage, by action or by advertisement, after a recorded notice of lien and 10-day mailed notice; the association also recovers interest, late fees, and attorney fees. Non-condo HOA remedies depend on the recorded declaration.