I am often asked if it is possible to get a house back AFTER a foreclosure sale has happened. The short answer is “yes”, it is possible, if that homeowner is able to “redeem” the property (also known as Redemption). However, this is complicated and expensive, so the best way to proceed is ALWAYS to prevent a foreclosure in the first place! If you have a foreclosure sale scheduled, call our office immediately for assistance!
Let’s say your foreclosure sale date has passed and the house has been sold. You may still have a right of redemption on the property pursuant to MCL 600.3240. This Michigan Law provides that a homeowner has a certain time frame to redeem the property, specifically:
If the homeowner still owed MORE than two-thirds of the original indebtedness on the property, there is a six (6) month redemption period.
If the homeowner owed LESS than two-thirds of the original indebtedness on the property, there can be up to a one (1) year redemption period.
If the property was abandoned, the redemption period is only thirty (30) days.
The homeowner can reside in the property during the redemption period, but can be evicted afterwards by the new owner. The new owner has the right to inspect the property during the redemption period. MCL 600.3238
The redemption period should be printed in the original foreclosure notice published in the newspaper.
In order to exercise your Redemption Rights by redeeming the property, a homeowner must pay to the purchaser:
The full price paid at the foreclosure sale
Any amounts paid after the sale by the purchaser, including, but not limited to property taxes, homeowners’ association dues and insurance premiums
It is very rare for a homeowner to be able to redeem a property after a foreclosure sale because of the costs involved.If at all possible, a homeowner should attempt to avoid a foreclosure sale by filing a Chapter 13 Bankruptcy case to force a mortgage company to accept arrearages under a payment plan.
Attorney Allison Greenlee Korr handles cases in Kalamazoo, Battle Creek and all surrounding counties, call today for a consultation. 269-381-4471