Right of Redemption

Tax Liens & Mortgage Notes
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Right of Redemption

Tom Endlein
Member since 2019 · 3 posts · 0 votes

Hi there!! I am looking to further my understanding on right of redemption for bank foreclosures in Michigan. 

Does anyone recommend or know of a book or resource that would help me better understand the topic?

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Wendy PattonBusiness Member
Real Estate Consultant · Clarkston, MI · Member since 2009 · 864 posts · 350 votes
6y

What would you like to know about redemption in Michigan?  For a simple answer it is 6 months after the sheriff sale - BUT there are some other things that can expedite or give 12 months.   Any more specifics you want to know?   There is no book or anything on it but it is pretty simple if you already understand foreclosure in your state.  It is the redemption rights that make it a little bit different - example: when you bid at the auction, you either need to get the previous owner (with their redemption rights) to deed it to you (waiving their rights) or you buy it from them during this 6 month period which is really them "redeeming" their rights.  Buying at the auction here in MI is different as you don't own it right away - that adds the complexity and timing to the deal - they might redeem or someone might buy it from them during this time period - hence redeeming.  You get your money paid at auction plus whatever their interest rate is if they redeem - so not much.   If it goes past the 6 months then you actually own it and can evict them or sell it.

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    6y

    Start with your state statutes, which you can find online.....that’s the law and everything you hear/read comes from that.  They also may change occasionally.

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  • Fred Moskowitz
    Fund Manager · Philadelphia, PA · Member since 2019 · 41 posts · 52 votes
    6y

    Hello @Tom Endlein

    Redemption period in Michigan is 6 months, and can be extended to 12 months if the amount due is less than 2/3 of the original loan amount.

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  • Wendy PattonBusiness Member
    Real Estate Consultant · Clarkston, MI · Member since 2009 · 864 posts · 350 votes
    6y

    What would you like to know about redemption in Michigan?  For a simple answer it is 6 months after the sheriff sale - BUT there are some other things that can expedite or give 12 months.   Any more specifics you want to know?   There is no book or anything on it but it is pretty simple if you already understand foreclosure in your state.  It is the redemption rights that make it a little bit different - example: when you bid at the auction, you either need to get the previous owner (with their redemption rights) to deed it to you (waiving their rights) or you buy it from them during this 6 month period which is really them "redeeming" their rights.  Buying at the auction here in MI is different as you don't own it right away - that adds the complexity and timing to the deal - they might redeem or someone might buy it from them during this time period - hence redeeming.  You get your money paid at auction plus whatever their interest rate is if they redeem - so not much.   If it goes past the 6 months then you actually own it and can evict them or sell it.

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  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    6y

    Usually each municipality or city will have its own stipulations in regards to a tax sale redemption.  

    1Reply
  • Tom Endlein
    OP
    Member since 2019 · 3 posts · 0 votes
    6y

    Hi Wendy 

    Thank you for your explanation. I am looking to market to those that have been foreclosed on by a financial institution. I just want to make sure I understand the redemption period and that a person can sell their property that has already been sold at a Sheriff's Sale.

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  • Account Closed
    Professional · Canton, MI · Member since 2016 · 296 posts · 230 votes
    6y
    Originally posted by @Tom Endlein:

    Hi Wendy 

    Thank you for your explanation. I am looking to market to those that have been foreclosed on by a financial institution. I just want to make sure I understand the redemption period and that a person can sell their property that has already been sold at a Sheriff's Sale.

    Michigan Real Property Law by John Cameron has some helpful material on the right of redemption. That's the Bible for Michigan real estate lawyers.

    3Reply
  • Wendy PattonBusiness Member
    Real Estate Consultant · Clarkston, MI · Member since 2009 · 864 posts · 350 votes
    6y

    @Account Closed Yes you can buy from the person who was foreclosed on during their redemption period - it doesn't matter if it was a bank or private lender who foreclosed.  And heck if you get any deals you want to flip,  let me know.   I am always interested in Metro Detroit

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