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