Home Buying in Detroit>Question Details

Heather, Renter in Livonia, MI

So i live in michigan and my house went to a sheriffs sale. I was wondering how long after that do i have to live in the house???

Asked by Heather, Livonia, MI Thu Jan 2, 2014

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So, one cannot get a loan to get their home back, during the redemption period. It MUST be cash?
0 votes Thank Flag Link Thu Jan 9, 2014
Likely, no. If you're behind on your loan to put it to sheriff sale, there is likely no lender that will give you a loan to keep the home. In this case, you'll have to go directly do your lender of the note and try to ask them for a revision to the note rate, terms, amount, etc.
Flag Thu Jan 9, 2014
Heather..are you the homeowner or a renter...?
0 votes Thank Flag Link Thu Jan 2, 2014
Heather, In one of the answers, there is some mis-information. If your house was sold at sheriff's sale for less than what is owed, that does become your redemption amount. For example, if you owe $75,000 on your mortgage but at sheriff's sale either the lender or an investor buys your house for $25,000, that $25,000 figure becomes your redemption amount. So if you were to come up with $25,000 in cash, you could buy your house back and you would own it free and clear.

My guess is that this man stalking you is an investor who bought your house and he wants you to leave so that he can sell it and make a nice profit. I specialize in foreclosures, short sales and underbids. I have helped many homeowners sell their house after a underbid at sheriff's sale and have seen them walk away with money to start over. Like I said, call me tomorrow and I can help you get the facts. You are under no obligation to work with me but you owe it to yourself to not let someone else take advantage of your situation.

Kathy Persha
248-930-0198
0 votes Thank Flag Link Thu Jan 2, 2014
I am well aware of what an underbid is, yes. I have done many. I think most people think under the false pretense the seller in most cases is able to remain in the home, when it's most often not the case. Can they sell and pocket the over? Sure. But it's not a common practice where they can stay in their home from doing this -- their original loan term commitment still applies in most cases and circumstances. Perhaps we are talking about two things.
Flag Thu Jan 9, 2014
Andy, I don't know how many underbid situations you have worked with. It is true that most people whose house has gone into foreclosure do not have the money to redeem even in the case of an underbid. However, they do have the right to sell and are able to keep the excess funds after the buyer is paid back their purchase price plus interest. In regards to the deficiency, in an underbid situation, the homeowner is still responsible if the lender decides to collect. However, I would prefer to help the homeowner sell the property and put money in their pocket to help with this deficiency rather than have an investor make the profit. The attorney that I worked with called the bank after his closing. He settled his deficiency for pennies on the dollar and still walked away keeping a good amount. This was not a one time situation. I have worked these underbids for several years when most realtors had no idea what an underbid was and many still do not.
Flag Thu Jan 2, 2014
Your answer can be true but partially improbable. Most owners who are delinquent don't usually have that sort of cash, so getting to the strategic default and then not being liable for the loss in this deficiency judgement state is risky.

Secondly, most people doing this sort of thing don't see enough profit in the short underbid as it's not usually published in advance nor in the legal news anymore. You may get an investor willing to buy block notes in bulk from a specific bank, but again, the vast majority of cases are not like this. While you may have clients that have had success with this, it is definitely the exception and not the rule.

As always, a client should seek council to know their rights before entering into any agreement with a person soliciting them.
Flag Thu Jan 2, 2014
Can i still sell it if it was bought at the sheriffs sale? Someone has posed many notes, knocked on my door at late hours of the night and looks in my mail slot.. I have called the number and told him i still live here and he claims he wants to help and give me cash for keys
0 votes Thank Flag Link Thu Jan 2, 2014
Heather, It sounds as though an investor may have bought your house at sheriff's sale. If this is the case he will haunt you until you agree to move out with some small monetary payment. This often happens when the house sells at sheriff's sale for less than what is owed. These "underbids" become great deals for investors. I recently helped an attorney whose house sold for considerably less than what he owed. He had someone knocking on his door constantly, leaving him notes in his mailbox and calling him. However, being an attorney, he knew his rights. He called me, we listed his house, he sold it and walked away with $50,000 in his pocket. Now, I am not saying that this could be the case with your house, but you should know the facts. If you would like to call me tomorrow, I will see if I can find out how much your house sold for and discuss your options with you. My number is 248-930-0198. Also, checking someone's mailbox is a federal offense.
Flag Thu Jan 2, 2014
That guy is full of crap most likely. Call the attorney on the original note. Anyone who solicits you has their best interest in mind, not you.

For that matter -- you can sell during this period and you'd have to pay off what you owe or do a short with your bank. You cannot buy it back from the bank (most likely) for the lesser amount.

Always remember - if it sounds too good to be true, it is. The guy soliciting you is full of crap.
Flag Thu Jan 2, 2014
And this guy say he bought it at the sheriffs sale....
Flag Thu Jan 2, 2014
Well, the answers here are partially true.
I list bank owned homes so the answer is yes, 6 months, if you are living in the home and are maintaining it with the utilities on and current.

If you aren't in the home and/or don't reply to the notices they place on the door, then they can file an affidavit of abandonment which can expedite the process to 30 days.

If any note has been placed on your door, it is imperative you call it right away and say you're living there.

After the 6 months eclipses, you will get another note -- which you need to call on again. The bank will likely offer you a cash for keys option if you move out and leave the home free of your personal items.

If you want more info, please let me know.
0 votes Thank Flag Link Thu Jan 2, 2014
You are blessed, about 6-7 months.

Also check with State Housing Department.

Good luck
Ruth
0 votes Thank Flag Link Thu Jan 2, 2014
Hello Heather,

Michigan has a 6-month redemption period. So you have 6-months from the date of the sheriff's sale to remain in your house. After the six-month period, you will be contacted by the foreclosing bank to vacate your property. They make offer you cash for keys at that time. This means that they might offer you some amount of money to leave the house quickly and in broom-swept condition. After vacating, they would then pay you the agreed upon amount. If you do not vacate after they give you notice, then they would go to court and asked the sheriff to evict you from the property.

Also, during the redemption period, you can redeem your house for cash for the amount that was paid at sheriff's sale plus interest. I hope that you have checked with the foreclosing attorney to see how much your house sold for. About 30% of the time, the foreclosing lender does what is called an underbid at the sheriff's sale. This is when they buy the house back for considerably less than what is owed. As I said, this happens only about 30% of the time and most homeowners do not know what this means to them. If your house was an underbid, it is possible that you can still sell your house, payoff the bank the amount that they bid at sheriff's sale and keep the rest of the money for yourself. It is always wise to see if this may be the case with your property. To get this information, you would call the attorney who handled the foreclosure.

Good luck to you and I hope that this information helps.

Kathy Persha, Associate Broker/Investor
Keller WIlliams Realty
Kathy@kaperproperties.com
248-930-0198
0 votes Thank Flag Link Thu Jan 2, 2014
Hi Heather,

You have 6 months from the date of the sheriff's sale to redeem your house out of foreclosure or try to do a short sale depending on the difference between the amount you owed and the redemption price the lender is asking.

If you aren't working with a Realtor. I'd be happy to assist you with options you may have.


Rose Cook, MA, SFR
REALTOR
Short Sale Specialist
National Realty Centers Inc.
1000 S. Old Woodward, STE 103
Birmingham, MI 48009
248-838-9272 cell
248-724-1234 office
248-724-1299 fax
rosecook1972@att.net
http://www.facebook.com/rosecookrealestate
http://www.finallyathomewith.nationalrealtycenters.info website
0 votes Thank Flag Link Thu Jan 2, 2014
Hi. Give me a call tomorrow morning to go over your options

3139862948
Jtarealty@live.com
http://Www.thejtarealty.com
0 votes Thank Flag Link Thu Jan 2, 2014
Michigan has a 6 month Redemption period during this time frame you can redeem your property back and or sell it for the redemption price or higher the faster you sell it the better.
0 votes Thank Flag Link Thu Jan 2, 2014
Can i still sell it if it was bought at the sheriffs sale? Someone has posed many notes, knocked on my door at late hours of the night and looks in my mail slot.. I have called the number and told him i still live here and he claims he wants to help and give me cash for keys.
Flag Thu Jan 2, 2014
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