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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Questions regarding Michigan's redemption process... Posted by Ward-CA- on January 29, 2004 at 10:43 AM In Reply to: Liens and redemption of property. posted by Rookie on January 29, 2004 at 7:09 AM : Have a couple of questions that I have been researching for weeks now. I would like to buy foreclosed property for purpose of renting it out. : 1. What happens if the house foreclosed/auctioned off by a junior lien? What my responsibility will be as a buyer? And vice versa what if the house has 2 mortgages and it?s foreclosed by a senior lien will I be responsible to cover second mortgage? : 2. I?m in Michigan and by law of the state original owner has 6 months to redeem the house. Let?s assume that previous owner moved out of the house right after the auction and I, as a new owner rented place out. So what happens if the original owner comes up with the money 4 month later? : It seems like there is a big secret around these questions, nobody ever goes into any details on these issues. ==================== #1. The foreclosure of a junior mortgage acts to extinguish itself and all other liens or interests that are recorded subordinate to its position. If you're the winning bidder at a foreclosure auction of a junior lien you only have to be concerned with those remaining senior liens that were not affected by the foreclosure of the junior lien. #2. Since the foreclosed owner has the (ROR) right to redeem her title for six months after the auction, she won't have to move out until her ROR expires. But even if she moves out early, you won't be able to take possession until the six months have lapsed. At that time you will have to go to the County Sheriff's office and exchange your Certificate for Title for the Sheriff's Deed you can record and establish you ownership of the property. The subject of foreclosure is driven by statutes, rules, and procedures that are somewhat convoluted Since most people aren't familiar with all the rules you won't be able to get answers except from experts or professionals who work with foreclosures frequently. Hope this helps. Follow Ups: Re: Questions regarding Michigan's redemption process... Ryan S. 11:48 AM, 03/17/04 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Have a couple of questions that I have been researching for weeks now. I would like to buy foreclosed property for purpose of renting it out. : : 1. What happens if the house foreclosed/auctioned off by a junior lien? What my responsibility will be as a buyer? And vice versa what if the house has 2 mortgages and it?s foreclosed by a senior lien will I be responsible to cover second mortgage? : : 2. I?m in Michigan and by law of the state original owner has 6 months to redeem the house. Let?s assume that previous owner moved out of the house right after the auction and I, as a new owner rented place out. So what happens if the original owner comes up with the money 4 month later? : : It seems like there is a big secret around these questions, nobody ever goes into any details on these issues. : ==================== : #1. The foreclosure of a junior mortgage acts to extinguish itself and all other liens or interests that are recorded subordinate to its position. If you're the winning bidder at a foreclosure auction of a junior lien you only have to be concerned with those remaining senior liens that were not affected by the foreclosure of the junior lien. : #2. Since the foreclosed owner has the (ROR) right to redeem her title for six months after the auction, she won't have to move out until her ROR expires. But even if she moves out early, you won't be able to take possession until the six months have lapsed. At that time you will have to go to the County Sheriff's office and exchange your Certificate for Title for the Sheriff's Deed you can record and establish you ownership of the property. : The subject of foreclosure is driven by statutes, rules, and procedures that are somewhat convoluted Since most people aren't familiar with all the rules you won't be able to get answers except from experts or professionals who work with foreclosures frequently. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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