In Michigan we have a redemption period after the sheriff's sale (auction). Usually that redemption period is six months but if the home sits on 3 acres or more, redemption period increases to 12 months. The homeowners can remain in the house during the redemption period. They can also list the house for sale and selll it with their lender's permission on a short sale during the redemption period. Once the redemption period is over, the lender will either post a notice on the door to evict the homeowner or will send an agent to the home and offer the homeowner cash for keys. In either case, the homeowner will have somewhere between 2 - 6 weeks to be out of the house after the redemption period. To read more on this subject, visit me on my website at http://kaperproperties.com/.
Per state law the homeowner has six months to redeem the property, the amount bid at the sheriff sale, plus any interest, fees, etc. Thus, they can live in the house for at least six months after the sale and maybe a little longer if they wait to be evicted.
Mike Warren, CDPE, SFR
Keller Williams Realty