Foreclosure Auction

[Aaron Fox]

If you buy a foreclosed home at an auction, how long is the redemption period in Michigan for the foreclosed owner to make good on their payments and keep the house? Also, if I were to buy a foreclosed home from an auction, what's stopping someone from going to the foreclosure owner during the redemption period and getting the deed and title transferred to them by striking a deal with the owner of the foreclosed property?

[Jay Hinrichs]

Not familiar with MI redemption rights however in Orygun @Chad U.  they work like this

6 months regardless of indebtedness...  However if one does redeem the mortgage goes back to original amounts due ( IE drop bid goes back to total amount due) also all junior encumbrance's re attach.

So in our state it rare as hens teeth that anyone redeems and its the same in other states ( I can't mention ) were I buy courthouse steps... 

the value to redemption rights in Orygun is simply to speed up time... you have investor that do nothing but chase the rights acquire them then go to auction and when someone buys the property they approach and negotiate to sell the rights for a fee greater than they paid for them.. this allows the successful bidder to proceed without having to wait out the redemption period... I can see this is probably a play in MI as well.  In other states I work in you can purchase a redemption bond. And the fact that those bonds are available and cheap means there is little to no risk of these things being redeemed.