Generally during a redemption period, the owner can choose to repay the lender in order to avoid foreclosure; for the sale to occur the terms of the lender need to be met; therefore, you may wish to discuss your situation with an attorney who specializes in real estate, he/she can best advise as to any options...... more
Mike, I am very familiar with this situation. About 30% of all foreclosures in Michigan are now underbid by the lender. That means that the lender bids less than what is owed at the sheriff's sale. They are underbiding because they do not want to get stuck with the house. This allows the homeowner to redeem their property if they can come up with the money or they can sell the house and keep the difference between what the lender gets and what the house sold for.
I recently has a situation where my client owed $227,000. The lender bid $45,000 at sheriff's sale. We sold the hold for $125,000 and the homeowner was able to keep the difference. There is no short sale in this situation. The lender has already agreed to take what their bid was at sheriff's sale plus some interest and legal costs. The closing is easy and simple just like any traditional real estate sale.... more