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Michigan Foreclosure Law, 6 Month Redemption Period

Posted by Missy Caulk on December 6, 2009 at 11:43am
Michigan Foreclosure Law is somewhat different than other states I have been reading about on Short Sale Superstars.I'll make it easy by going step by step:1) Home owners misses 3 mortgage payments.2) 15 days before it goes in the newspaper, a notice of foreclosure is placed on the door.3) It then must appear in the papers for 4 consecutive weeks.4) Then it goes to the sheriffs sale.4) After the sheriffs sale, Michigan has a 6 month redemption period.5) During the redemption period the homeowner can "redeem" the property by paying all the fees and back payments. A redemption amount is given to the Servicing Company so the homeowner can request the redemption amount.6) We still can continue to market and sell the home as a short sale during these 6 months.7) Until the 6 months are over the bank does not have title to the property. We still deal with the sellers and their banks.8) The sale is recorded with the County as a foreclosure and you can see the county records and count 6 months to that day and know that at that time the sellers (homeowners) will have no redemption rights.9) ****If you own over 3 Ac the redemption period is one year not 6 months.10) We are a non-judicial state. The common term is foreclosure by advertisement.11) We are a deficiency state which means that the mortgage company can come back and go after the seller if the sheriffs sale is less than the amount owed the lender.12) If the home is abandoned then the bank can take possession before the 6 months.
Tags: Foreclosure, MI, period, redemption
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Comments

  • Missy Caulk December 8, 2009 at 1:46pm
    Bryant they said NO, flat out NO.

    The redemption period ends on the 11th, so they will not look at the other offer. They won't give me the listing.

    So it is all over. I would post the emails but they are depressing.
  • Bryant Tutas December 7, 2009 at 1:26am
    OK cool. I'd be interested in what you find out.
  • Missy Caulk December 6, 2009 at 12:43pm
    Well that is a good question and one I am trying to figure out.
    One buyer walked and I have been trying to get a new offer. Redemption period is up on Dec 11th.
    I have it as "Approved Short Sale" in MLS, with the BPO price.
    So I will know soon, how this bank Litton Loans 1st and Chase 2nd are going to respond. I am trying to get an offer in front of them before that day to see if they will extend.
    One buyer went into labor so that halted their offfer.
  • Bryant Tutas December 6, 2009 at 12:16pm
    Missy, Once the redemption period is started does the lender have to take over title after 6 months or can they choose not to?
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