Need help understanding redemption

My home will be sold at sherriffs auction in two days. The paper work I received says I have a 12 month redemption period (Michigan) Does that mean I can still sell my home “by owner”?
Also, why do some people on this sight keep saying Michigan is six months redemption period (that makes me nervous)

Again, I may be wrong since I’m a newbie, but I believe that means you have to cure the loan with whomever purchases it - or if no one does cure it with the bank who took it back. The house will be sold to someone or the bank at the sherrifs auction; you won’t own it anymore. Thus, you cannot sell it. If you want to get it back, you have to come up with the back payments and all the other fees, interest, etc. , that the bank spent on foreclosing on your house some other way.

I can answer one question. As long as you have the redemption period you can still sell your home.


per this link
it seems the redemption period is 6 months. The guy you runs that site is pretty up on that stuff, but maybe its a recent change in the laws.

first and foremost, you will NOT own your home any more after the sale. thus you can not sell it.

redemption means you can buy it back from the new owners or cure the default. I have heard cases where 3rd parties will approach you asking you to assign your right of redemption to them for money. I am not sure of the legality of that type of tranaction so get some outside advice before entering into that type of deal. This may be what people are refering to when they talk about “selling your home after the sheriff’s sale”

The redemption period is different state-to-state and even by the type of foreclosure…

For a standard foreclosure, one it is final, there is no redemption but if it is a tax sale, there is a three year redemption period! off to the left of this page it gives the foreclosure laws for every state!


In Michigan if you have over a certain amount of land with it then the redemption period is 12 months. If it is residential and occupied then it is usually 6 months. You have until the end of the 12 months to get it sold and the mortgage paid in full. You have a couple choices.
A. You could sell it to a family member for what is owed. There is no transfer tax paid by the seller when you sell to a family member.
Maybe they could do a zero down program and rent it back to you until you get up on your feet. Or we could do a gift of equity back to the buyer for the downpayment.
B. You could have someone buy it from you via a short sale and get the bank to take less then what you owe.
Both of those choices will stop the full foreclosure and you will probably be able to buy another property much sooner then if it goes back to the bank.
Take Care and send me an email if you have questions.