Home Buying in Detroit>Question Details

Carrie, Home Buyer in Detroit, MI

What exactly does a sheriffs deed mean to a buyer?

Asked by Carrie, Detroit, MI Fri Apr 11, 2008

I'm looking at a property that has already been foreclosed on. The house has had alot of work done to it so someone told me to check for a mechanics lein. I called the register of deeds and they said there were no leins on the house just a sheriffs deed with a 6 month redemption period, which was already up. Is a sheriffs deed a bad thing?

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LYNN Afton’s answer
When a property is foreclosed in Michigan, the home is sold to the highest bidder at a Sherrif's sale on the county courthouse steps. Most often, the buyer at the sherrif sale is the lender. The redemption period was determined by the wording in the mortgage the owner had on the home - usually 6 or 12 months. During that time, the home often sits vacant, or the owner may be continuing to market the home for sale, hoping to redeem it before the redemption period expires. Once it passes the redemption period, it is the property of the buyer from the Sheriff Sale. So, if the lender bought it, generally it is listed for sale as a foreclosure property, as they have proof of ownership via the Sheriff's Deed document, which is on file with the County Register of Deeds and gives them the right to sell it. For a new buyer, the Sheriff Deed is an ownership document in the chain of previous owners, and it is important to have the transaction processed through a title company, with an owner's policy guaranteeing the property is free of encumbrances. Sometimes foreclosure companies state right up front that the buyer has to purchase his owner's title insurance in addition to a mortgage title policy. In a regular buyer/seller transaction, generally the seller is responsible for buying the owner's title policy.
1 vote Thank Flag Link Fri Apr 11, 2008
A sheriff's deed just means the house was foreclosed. If you want to buy a foreclosure, there will have been a sheriff's deed.
Web Reference: http://mioaklandcounty.com
1 vote Thank Flag Link Fri Apr 11, 2008
Maureen Fran…, Real Estate Pro in Birmingham, MI
No....All homes in Michigan that go to foreclosure have a sheriff's deed. It is foreclosed on and then goes to sheriff sale. If the owner does not redeem it from the sheriff sale it becomes the banks property
0 votes Thank Flag Link Sat Mar 9, 2013
Where can you get a copy of sheriffs deed in washington state
0 votes Thank Flag Link Fri Mar 8, 2013
The only bad thing is that there is a period of up to a year where the original owners can purchase the property from you, the sheriff deed holder pls 20% profit. After the 365 days are over its the purchaser of the sheriffs deed free and clear.
0 votes Thank Flag Link Wed Nov 16, 2011
Carrie, It could be any number of reasons why the bank dropped the price. There could be structural or other problems that the agent found after getting the home. They may have gotten updated Broker Price Opinions (BPO's) indicating surrounding homes were selling for less, or other issues. That's why you need a Buyers Agent. We can only speculate.
Web Reference: http://www.mi-living.com
0 votes Thank Flag Link Fri Apr 11, 2008
okay, that kinda answers another question of mine. The house sold for $55,000 in 2005 and I was able to find out that it was apparently sold in july of 2007, the same month it went to foreclosure. but, It went for $93,500 in july 2007 the owners lived in it and had it on the market for $115,000 until the redemption period was up in January. It was then listed at $57,900, and just dropped to $39,900 a few days ago. I guess I'm trying to figure out why it's priced so low. It has a new addition, roof, wiring, wtr heater, and windows.
0 votes Thank Flag Link Fri Apr 11, 2008
Carrie, In Michigan, only a Buyers Agent can reprisent your best interests in a real estate transaction. This can be any agent except the one listing the home, but I suggest finding someone experienced with purchasing foreclosure homes.

Sample real estate forms are available on the site below. They can be enlarged when opened
Web Reference: http://www.mi-living.com/
0 votes Thank Flag Link Fri Apr 11, 2008
YES Ma'am! better yet, your aunt could contact a title co in the county where the home is and do a cursory search to ensure all is well. That tile agent no doubt would be able to refer you to a Realtor who knows that area. GOOD LUCK!
0 votes Thank Flag Link Fri Apr 11, 2008
My aunt works for a title company in Ohio, would she be able to find anything on this house in Michigan? I'm not currently working with a buyers agent.
0 votes Thank Flag Link Fri Apr 11, 2008
Carrie, It was bad for the homeowner. When purchasing a foreclosure, make sure you check and recheck that there are no blemishes on the Title (like the mechanics lien) your Buyers Agent should be able to do that through their Title Company.
0 votes Thank Flag Link Fri Apr 11, 2008
Thank you, I just wanted to make sure that wasn't a bad thing.
0 votes Thank Flag Link Fri Apr 11, 2008
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