Home Selling in Bay City>Question Details

Jodie, Home Owner in Bay City, MI

can I still take part in a short sale after a foreclosure and sheriff sale have both been completed?

Asked by Jodie, Bay City, MI Sun Jun 17, 2012

At this time, the foreclosure has been completed and my husband and I have until September 23 to find another place to live.

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There's a 6 month redemption period once the sheriff's sale happens. Depending on circumstances, that should be plenty of time to get a short sale done.

However, if the foreclosure process has already been completed, the bank owns the home and you need to wait until it comes back on the market.

Contact a local real estate agent. They'll be able to better help you.
0 votes Thank Flag Link Mon Jun 18, 2012

Michigan is NOT A JUDICIAL state and there is still hope for the homeowner after the sheriff's sale. I have sold many many properties during the redemption period for less than the sheriff's sale bid. And the lenders have approved the sale for less than the mortgage amount and for less than their bid amount at sheriff's sale with no deficiency for the homeowner. If you are not familiar with how things are working in other states, please don't give incorrect information to homeowners. Thank you.

Kathy Persha, Realtor
Keller Williams Realty
0 votes Thank Flag Link Mon Jun 18, 2012
I guess I do not understand the question, are you asking if you can still do a short sale on a property that has already sold at the court house door? If that is what you are asking the answer is no, the mortgage is released when the sale is completed so there is no mortgage to short sale. If you have a redemption option because the property didn’t sell for enough you maybe, might, possibly be able to sell it to someone, title would be a mess to straighten out. I doubt the lender let it go less than the mortgage or the required value to eliminate the redemption period, which ever was less. If they did then their problems may be worse than yours.

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Mon Jun 18, 2012
Jodie, Michigan has a 6 month redemption period. During that time, you still have possession of the property and can sell it. Short sales are possible as well during this time, but it depends on your Lender. Some Credit Unions will not allow it after the sheriff sale. Some will not allow it anytime. While most major banks and lenders will work with you on a short sale anytime up until the expiration of the redemption period. Kathy is correct, you need to have an offer and all required documentaion in hand at least 4 months prior to the expiration of the redemption period for it to be possible.

If Sept 23rd is the deadline, then it sounds like you do not have enough time to accomplish the short sale. I wish I could give you more positive news. At the end of the redemption period, if you are still in the house, the Bank will have to evict you through normal process wich takes approximately 21 days.

I hope this information helps you in some way.

Ray Spitler, Associate Broker
Keller Williams Realty- Saginaw, Midland & Bay County Michigan
0 votes Thank Flag Link Mon Jun 18, 2012
Absolutely. However, if you only have 3 months left of the redemption period, it may not be enough time to complete the short sale. First, your home has to be listed with an agent. Then you need an offer quickly to submit to your lender with a complete short sale package. Depending on who your mortgage is with, the timeframe for short sale approval can be anywhere from 60 days to 1 year. There are also other factors to take into account such as is there a second mortgage or home equity loan or any other liens against the property. And what was the bid at sheriff's sale - did the lender make a full offer bid or did they bid less than what you owe on the property. You really need to speak with an agent who has alot of short sale experience who can over go many of these questions with you.

A short sale is almost always a better option than a foreclosure for many reasons. But one important one is that a foreclosure will remain on your credit report for seven years while a short sale will remain for two years. An agent or an attorney well versed in short sales can discuss the many pros and cons of each with you and determine if there is enough time left to complete the short sale. Good luck to you.

Kathy Persha, Realtor
Keller Williams Realty

0 votes Thank Flag Link Sun Jun 17, 2012
WOW. You can do this in Michigan? Not in Virginia. In Virginia once the foreclosure has occurred the bank owns the property and that's that. The person who was foreclosed upon is no longer the owner, and therefore can not sell the property.
Flag Sun Jun 17, 2012
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