KNOW YOUR RIGHTS UNDER MICHIGAN FORECLOSURE LAW
What are your options after the Sheriff’s Sale? The Sheriff’s sale is held weekly at the county court
house and is open to the public providing an opportunity to the community to purchase your home for the
highest bid REGARDLESS WHAT YOU MAY HAVE OWED ON YOUR MORTGAGE. Most homeowners
picture hundreds of hungry bidders looking for a good deal on a house. This is rarely the case. In fact, the
majority of the time the mortgage is purchased by the original lender and rarely to an independent buyer. At
the time of the auction sale a sheriff’s deed is issued and your redemption period begins.
It is your right as a homeowner to try and sell the home during the redemption period. If we can sell it
for more than the redemption price owed and all other liens such as 2nd mortgage, water bill and property
taxes, YOU KEEP THE EQUITY! We have helped our clients sell their homes for more than the redemption
amount putting thousands of dollars in their pockets.
It is your right as a homeowner to live in the home without paying rent or mortgage payments for the
FULL redemption period. In the state of Michigan homeowners are protected by a 6 month right of
redemption and in some cases up to a year. This is a period of time to gather resources and “redeem”
ownership of the property (ACQUIRE FUNDS TO PAY THE REDEMPTION AMOUNT). It is important to
maintain the utilities and property as if you owned it. Shovel the snow and cut the grass to clearly establish
that you still live in the home. If the holder of the sheriff’s deed can establish in court that the home has
been abandoned they can ask the court to SHORTEN the redemption period to as little as 30 days. If you
receive a letter regarding issues of abandonment call the court immediately.
It is your right as a homeowner to stay in the home until you are evicted by court order .Even on the
outside chance that your home is purchased by an independent buyer it is your right to live in the home for
the full 6 months right of redemption. Do not let anyone pressure you into moving out. Contact an attorney if
you are feeling harassed or pressured to move. At the end of your redemption period you will be served
with eviction papers. If you choose to challenge the eviction you can go to court and plead your case
before a judge. The final eviction order will be served by the county sheriff’s office.
It is your right as a homeowner to know what the redemption price is. The amount
required to redeem the property is NOT always the same as what you owed on your 1st / 2nd mortgage if
applicable and will be more than what the property sold for at auction/what you owed on the mortgage
when it first went into default 4 -6 months before the auction. Additional fees such as Legal fees, interest,
late fees, and court costs are added to the redemption amount (typically a small percentage). Throughout
the redemption period per diem (daily) interest (at the rate you were paying before defaulting) is added to
the redemption amount. IN SOME CASES THE REDEMPTION AMOUNT IS A SMALL FRACTION OF THE
ORIGINAL 1ST MORTGAGE AMOUNT OPENING UP EQUITY THAT CAN BE ACQUIRED AT CLOSING.
The following Michigan law outlines how the records are kept:
Effective March 30, 2005 pursuant to HB 929 and HB 931 of 2004:
HB 929 of 2004, Section (3). The Register of Deeds shall not determine the amount
necessary for redemption. The purchaser (at auction) shall attach an affidavit with the deed to be
recorded under this section that states the exact amount required to redeem the property, including any
daily per diem amounts, and the date by which the property must be redeemed shall be stated on the
certificate of auctioneer. The purchaser may include in the affidavit the name of a designee responsible on
behalf of the purchaser to assist the person redeeming the property in computing the exact amount
required to redeem the property. The designee may charge a fee as stated in the affidavit and may be
authorized by the purchaser to receive redemption funds. The purchaser shall accept the amount
computed by the designee. To determine who is acting on behalf of the holder of the sheriff’s deed call
your county registrar of deeds for a copy of the record.
It is your right as a homeowner to refinance your home with another lender. The challenge is
that your credit score and credit history take a hit during the foreclosure process and qualifying for a
mortgage may not be possible. If you have a family member who is willing to finance the mortgage on your
behalf you can still redeem the property.
THE WORSE THING YOU CAN DO IS NOTHING!
THE CONSULTATION IS FREE…NEVER AN UPFRONT FEE!
WE WORK FOR YOU NOT THE BANK!
STILL NOT CONVINCED? ASK US TO PROVE IT! CALL 248-890-4428
We are not Attorneys or tax accountants and do not represent ourselves as such, all information
contained or convey in this site is for informational purposes and should be independently verified.
Whether you're buying or selling Let our Team Bring You Home!
Our staff of dedicated full time Realtors, Title, Mortgage and Insurance Professionals, work collectively
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John Adams Mortgage-Captial Title-Insurance One
- Probate-Estate-Trust liquidation
- Sheriff Sale Redemption-Short Sale
- I.R.S. and other lien entanglements
- Land Contract-Bank owned-H.U.D.
Specializing in non-traditional real estate transactions
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