Foreclosure in 48047>Question Details

D Down, Home Buyer in 48047

I am interested in obtaining a property in its 12 month redemption. Sheriffs sale price was in mid $200's

Asked by D Down, 48047 Sun Aug 24, 2008

(with second mortgages etc.), the first mortgage holder (bank) obtained it for mid-100's. The redemption quote states the property can be redeemed from the bank for the mid-100's plus interest etc. If I redeem it and have the owner sign off his redemption rights, can I assume the second mortgages etc. are clear from the title? If not, where can I find this information?

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Everybody that said the junior liens would remain if the property is redeemed is correct. The smartest thing to do in this situation (if possible) is to contact the grantee listed on the sheriff's deed (the bank) and see if they are willing to assign or deed you their interest in the sheriff's deed itself. this way, if the borrower does not redeem, then you will be the owner once the redemption period expires.
0 votes Thank Flag Link Wed Sep 16, 2009
D Down typically MI has a 6 month redemtion with the exception of 4 things (see below). This will be super important so you meet all the time lines. If you are buying it from the seller during redemption you are basically doing a short sale with both banks, assuming they owe more on both than what you are offering. The 2nd knows there will be money on the table so they will want something before the redemption is over.

We have seen several things happen - they ask the 1st for money to sign off, ask the seller for a promissory note after closing for monies owed, ask for a certain amount to be left at closing for them, let the seller take the note back as a personal loan. These are just a few.

If you do not have an agent or an attorney get one or both. These are very time consuming and both banks will need to be contacted as to their actual procedure. Depending on the banks they can take 2-3 months.
0 votes Thank Flag Link Sun Aug 24, 2008
good afternoon...best regards to michelle..but no, the only way to have all junior liens drop off, is to have the first mortgage run the entire course of redemption and then deed back to the bank.....the owner would not sign off on his redemption rights, if you want that direction....he would do a recordeable assignment of his redemption rights to you.....but again, that would mean that all jr. leins stay in effect.....bob mcclure- mortgage now- farmington, michigan (248) 974-4444....direct cell......almost 14 yrs experience...
0 votes Thank Flag Link Sun Aug 24, 2008
Do not assume anything when it comes to this situation. The 2nd will have to be satisfied in some way. either you or the 1st lein hold (if no realtor involved) will have to have the 2nd sign off or agree to some kind of pay off. If you are not using a realtor (and even if you are) I suggest you involve a real estate lawyer to make sure that everything is taken care of.
0 votes Thank Flag Link Sun Aug 24, 2008
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