Michigan situation guide · Updated November 2026

Wholesaling Short Sale Properties in Michigan

Wholesaling short sale properties in Michigan means contracting on a home worth less than the mortgage and assigning that contract once the lender agrees to accept less. It takes patience, because the lender decides, not the seller. Owners in Ingham County who are behind may welcome an exit that avoids a sheriff’s sale.

Lender approvalNegotiation100% online mentorship

Get the free starter kit Book a free call

Call/Text818-532-0481

Let’s find your starting point

Explore the mentorship.

Request a free fit call to discuss your goals and whether the program is right for you.

The short answer

Can you wholesale a short sale in Michigan?

Yes, you can put a short sale property under contract and assign it, but the sale usually needs the lender’s written approval. Keep every promise in writing, and do not guarantee the lender’s answer.

A short sale happens when the sale price is below what the owner owes. The lender must approve the lower payoff, and approval can take weeks or months. Your contract should make the sale conditional on that approval. Our short sale wholesaling guide walks through the steps, and the assignment guide covers the contract.

Be careful with the lender. Lenders expect an arm’s-length sale at a fair price, and they may ask whether the buyer is related to the seller or plans a quick resale. Read our arm’s-length guide and answer every question honestly. Never hide an assignment from the lender or the seller.

Short Sale Properties in Michigan at a glance

Who approves	The lender or servicer
Timeline	Often weeks to months
Contract term	Contingent on lender approval
Foreclosure risk	Sheriff’s sale can proceed unless stopped
Michigan wholesaler license	None found; broker rules can still apply
Seller disclosure	Often applies to an owner-occupant seller; check exemptions

The opportunity

Why wholesaling short sale properties in Michigan can work

Lansing and the rest of Ingham County include many older homes where owners borrowed against equity or lost income. Some owe more than the house would bring today. The owner may prefer a short sale to foreclosure, and a buyer may get a discount the lender has already agreed to. The work is in the paperwork. Estimate value with the comps guide so your offer holds up when the lender orders its own opinion.

Motivated owners

Owners facing a sale are often ready to talk. See the motivated sellers guide.

Lender discounts

An approved short sale can deliver a price below market.

Less competition

Many buyers avoid the wait, which leaves room for patient investors.

Get the free starter kit See the mentorship

Lead sources

Where to find short sale leads in Michigan

Pre-foreclosure lists. Owners who received a foreclosure notice may need options. Try the pre-foreclosure leads guide.
Agent referrals. Listing agents sometimes meet owners they cannot help.
Attorneys and counselors. Housing counselors and lawyers may send you owners in trouble.
Direct mail. A kind letter to owners in default can open a talk. See yellow letters.
Public notices. Sale notices in the county can point to homes headed to sale. See lis pendens.

Your exit

Who buys short sale deals in Michigan

Patient investors and landlords are the usual buyers. They accept the wait and want a clear timeline. Tell buyers early that the lender controls the date, and give them a realistic window. Ask whether they can wait through a missed date, extra paperwork or a new lender request, since delays are common and a buyer who walks costs you the fee.

Some buyers want to renovate and sell. A house flip overview shows the numbers they check. Use a buy box list to match the property to the right buyer.

Book a free call

Step by step

How to start wholesaling short sale properties in Michigan

Learn the owner’s situation. Ask about the loan, any notices and the hardship.
Get the contract. Write a purchase contract contingent on lender approval.
Run the numbers. Use the ARV calculator and the MAO calculator.
Send the package. Submit the hardship letter, financials and offer to the lender.
Track the clock. Keep an eye on any sale date. See the redemption guide.
Assign when approved. Move to a buyer once the lender approves in writing.
Close through title. Use an investor-friendly title company that knows lender payoffs.

Your checklist for wholesaling Short Sale Properties in Michigan

Make the contract contingent on written lender approval.
Ask the lender whether it allows assignment or a resale.
Track any foreclosure sale date and tell the buyer.
Get the payoff and approval letter before closing.
Have a Michigan attorney review the file.

A Michigan example: a Lansing ranch with a mortgage above value

Mortgage owed	$168,000
Market value	About $145,000
Approved short sale price	$128,000
Buyer price	$138,000
Assignment fee	$10,000
Time to approval	About 10 weeks

A Lansing homeowner worked for the state until a layoff cut her income. She owed $168,000 on a ranch that would bring about $145,000. The lender had begun foreclosure.

You signed a contract at $128,000, contingent on approval, and sent the lender her hardship letter and comps. You told her in writing that you might assign the contract.

After about ten weeks the lender approved. A local investor took the contract at $138,000, you earned $10,000, and she moved out without a sheriff’s sale.

Michigan rules to know

Michigan rules for short sales

Foreclosure by advertisement is the usual path for a mortgage in Michigan, and the sale is by the county sheriff. After the sale the owner generally has a redemption period. For many one- to four-unit homes it is six months, and in some cases it is shorter or longer, so check current rules. Read how foreclosure auctions work to see how timing fits.

Michigan has no wholesaler license that we found, though the broker definition is broad and repeated deals can draw attention. Check our license overview and ask a lawyer. The Seller Disclosure Act generally covers one- to four-unit sales by owners, with some exemptions, so confirm whether the form is required in your deal. Tell the buyer about any known problems with the house too, because honest facts early save deals later and protect your reputation with both sides.

Learn it with a mentor

Work the lender, not just the house

Short sales reward steady follow-up. Mentorship students share their lender packages, and we help them tighten the file.

See the course See the mentorship

FAQ

Short Sale Properties in Michigan: common questions

Is wholesaling short sale properties in Michigan legal?

Generally yes, with honest disclosure and an assignable contract. Check broker rules and the lender’s requirements. The sale usually needs the lender’s written approval, so keep every promise to the seller in writing and do not guarantee the lender’s answer.

How long does a short sale take?

Often several weeks to a few months, depending on the lender. The lender must approve the lower payoff, so make your contract conditional on that approval, and tell the seller and your buyer that the timeline is the lender’s, not yours.

Can foreclosure continue during a short sale?

It can. Track any sale date and ask the lender about delays. A foreclosure sale date can arrive before the lender answers, so watch the calendar, and keep the seller informed about what the lender has and has not said.

Does the seller owe the difference?

It depends on the lender’s approval letter. Ask the seller to get legal advice. Read the letter for what it says about any remaining balance, and do not tell the seller anything the lender has not put in writing yet.

Can I assign a short sale contract?

Often, but the lender may have rules. Ask before you market it. Your contract should make the sale conditional on lender approval, so check whether the lender allows assigning the contract and get its answer in writing before you line up a buyer.