I recently lost a house to foreclosure. I have a 6 month redemption period (Michigan) to pay off the property
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I'm a realtor in michigan. My family owns its own real estate company and we have about 100 homes for sale right now for sale that are in there redemption period. YOUR GOING TO WANT TO SELL THE PROPERTY! If you dont and the bank takes it, the IRS will be coming after you for any money that was lost.
For example, you owe 100k, the bank takes the property and resells it for 75k. The IRS will look at that 25k loss as a profit to you so you'll be paying taxes on that property. Also, it will look better on your credit if it says borrower and loan company agreed to terms to have this collection paid off etc... If your credit report says open collection on whatever amount of money, another lender is going to see that and not going to lend you any other money to buy another house.
You said it sold for 9k less at sheriff sale which is good. BY LAW, you only owe the amount that your home was sold for at sheriff sale.
The bank has the right to take your property within the first 30 days after sheriff sale. However, you do still have the right to sell your home 6 months after sheriff sale. If it is after 30 days of your sheriff sale and your living at the property, they cant kick you out until your 6 months is up. BUT if its after 30 days and the home is vacant, the bank can take it whenever they want.
You have any other questions regarding this, send me an email but I hope this helps.
Contact YOUR lawyer. It appears that you may have a right to buy the place back but for now the lender owns it and does not have to allow you access to it as it legally isn't yours any more.
I am not an attorney, nor do I have experience with this situation, but I am a real estate agent and my understanding is this. The redemption period allows you to come up with the money to pay off the mortgage, but you cannot sell it because you no longer own the property. Your opportunity to sell ended with foreclosure. You should speak to a real estate attorney to confirm this.
What is being done is legal. Once the sheriff's sale is completed the property is no longer yours, until you redeem it.
Should you choose to redeem, expect to pay the full amount of the mortgage and the lender's legal fees to process the foreclosure proceeding. What has happened here is that you have lost your house to foreclosure, but state law is being generous in saying "We will give you six months to rectify the problem and pay what you owe. Then you can still have your house back."
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