“They Broke Into The House & Changed The Locks!”
Yes, that’s exactly how the first part of this conversation with one of our new sellers went. The rest of the story is unbelievable, but we managed to turn it into a good ending (so far). But first, a little education for you so you can understand this story…
Redemption period – what’s that? A redemption period is a number of days or months after a foreclosure auction during which time you may redeem the property. At the auction, the house is sold back to your lender (most of the time) – by redeeming, you are claiming the property back so it’s yours again. Michigan is one of only 10 states that boasts a redemption period – ours is generally six months.
Sounds pretty good right? Here’s the catch: the amount owed must be paid in full during those six months (plus interest & attorney fees), so, if you were to receive a large monetary gift, or win the lottery, you might be able to redeem the house.
Or, you could sell it.
Thing is, every seller in Michigan has redemption rights (unless he or she chooses to sign a deed in lieu of foreclosure with the lender which gives up those rights). That is something no business, individual, or entity can take away from you – you are protected by Michigan law.
So our new seller was in this very situation; unfortunately, a local business that wishes to attain her house sooner rather than later (they don’t want to wait out the six months), seems to have aggressively pursued their goal by unethical means. The property was broken into and they tried to bully her – for lack of a better term – into foregoing her right to redeem the house herself. They were likely playing the odds she would not know her rights or contact a third party. Sad to say there are people out there who prey upon those in financial hardship.
The good news (because we taught her how to deal with these bullies) is she’s now exercising those rights and intends to redeem the house.
I just wanted to take a few moments to stress how important it is for you as a seller in foreclosure-ridden Michigan to know your options and more importantly your rights – both in prosperity and hardship.
If you’re faced with a similar situation (or anything else related to Michigan foreclosure for that matter), give us a call – we’re all happy to help!
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