The Redemption Period works differently in every state. In some states or Countyies it could be drastically different.
*The following is NOT legal advice and WE always suggest consulting with an atorney before making any decisions with something as important as your home.*
We are the most familiar with the State of Michigan. Here are some general examples of how Redemption works there based on our experience.
In Michigan, the Redemption Period is the 6-months immediately after Sheriff’s Sale
In Michigan you have the opportunity to either buy back the property for the amount it sold for at the Sheriff’s Sale auction plus other possible fees.
WARNING: There could still also be a deficiency (back penalties and interest). If so, the deficiency may be handled differently by each lender.
Redemption Buy Back Options Could Include
- Past amounts due (deficiency)
- Loan shortages from the Sheriff’s Sale
- Back penalties and interest
- Legal and Misc. fees
Redemption Options May Include
- Buying the property back for cash
- Buying the property back with alternative financing
- Selling to a wholesale or cash investor (Sheriff’s Sale +)
- Selling Retail (Sheriff’s Sale+)
- The law firm that handled the Foreclosure will be able to provide the payoff amount
- Monies received over the payoff amount is yours less closing costs
- Cash for Keys
**Until you deciside whether to buy or sell the property we suggest that you do NOT move out.**
Keep In Mind
- The law firm handling the foreclosure works for the mortgage Lender and not you
- You mave have legal rights to remain in the property
- If the property looks as if it is in disrepair you can lose your Redemption rights
- If the property looks as if is not being maintained you can lose your Redemption rights
- If the property looks as if it is abandoned you can lose your Redemption rights
- You are still responsible for ALL utilities and maintenance
- The Lender may have the right to inspect the property to ensure it is being maintained
After Redemption
- You have NO rights to the property
- You could be FORCED to vacate (eviction)
- You MIGHT be able to negotiate with the lender for “Caash for Keys”
- “Cash for Keys” is common, but guaranteed to be offered
- “Cash for Keys” generally has some common stipulations
- You must vacate by the date that both parties agree to
- You must remove ALL debris and personal belongings (includes ALL buildings, yards, etc.)
- You must remove all furnoture from the property (includes ALL buildings, yards, etc.)
- You must remove all vehicles from the property (includes ALL buildings, yards, etc.)
- You must have all appliances clean and cleaned out
- You must leave the place “swept clean” and ready to be marketed for sale
- “Cash for Keys” exchange will be handled by a local representative of the Lender
The Lender’s Representative will inspect the property and exchange a check if all those conditions (and maybe others) are met for the keys to the property.
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