Buying a purchase that's in redemption period
I'm looking at a property that says on the MLS that is "This is NOT A SHORT SALE & NOT BANK OWNED. Must close by May 25th; Home in Redemption". It's not an auction, it's a traditional sale.
I don't fully understand what the implications of this are. As far as I understood it, if a property is in redemption, then the homeowner can buy it back from you at the cost paid plus taxes and interest.
From what I understand from my realtor, I'd still get a warranty deed at the end of this. But does this mean:
* the current owner can take this property back off me within the 6 month redemption period?
* What happens if I have tenants in there during that time? Would the old owner have the honour the tenant's lease?
* Would the old owner have to pay for any improvements you've made to the property?
Interestingly enough, Zillow says the property went into foreclosure nov 25th and the lender took it, which means it's pretty much bang on 6 months.
It's in Michigan if that helps.