I'm not a lawyer, so this isn't legal advice. But, sure, there are plenty of ways around it, though, frankly, 3 months isn't an eternity.
Here are two strategies:
Form an LLC (limited liability corporation). Transfer ownership of the property from you to your LLC. Then sell the LLC.
Or, similar, form a land trust. Transfer ownership of the property from you to your land trust. (That doesn't trigger the due on sale clause, per Garn St. Germain.) Then sell the beneficial interest in the land trust.
Hope that helps.
You should check with your mortgage rep/ bank or if you have an agent, have them explain exactly what they are talking about.
Realty Executives e-Group
First, how did you find out about the REO property? Was it listed? If it was listed and they are telling you it can't be sold for 3 months ... that doesn't sound right.
If you found the property through some other means, such as public records or RealtyTrac.com, it's possible the bank started the foreclosure process, but Michigan law states that current owners have 6 months to redeem the property if they can as long as it's not abandoned. So, basically, they have to pay their loan to bank in full to "redeem" it. Maybe this is why you're getting this information? Banks cannot sell out from under current owners during this redemption period.
I'd be happy to reaserch it for you if you're not already working with a Realtor.
Best of luck,
I suggest joining a local Real Estate Investment Association. They may have some suggestions.