"No one told us we could do that!" Foreclosure Diaries - Big Rapids, Michigan - New Redemption Period Law
My heart is breaking once again for the "underwater" homeowners about to lose their home.
In the State of Michigan, due to a new law that went into effect December, 2011, most homeowners now have only a six month redemption period to buy back their home after it has went to sheriff's sale, IF YOU ARE STILL LIVING IN THE HOME.
The new law (MCL.600.3240) states that if on the date of the foreclosure notice the amount owed is more than 66-2/3% of the original indebtedness for the home mortgage, redemption period is six months. If you owe less than that percentage, the redemption period is one year.
If you abandon your home, the redemption period is shortened to three months if you owe less than 66-2/3% of original mortgage, and if you owe more than that, the redemption period is only ONE MONTH if you have abandoned your home!
Unless you filed a Schedule F with your federal 1040 tax return the previous year proving your property was used for agricultural purposes, there is no longer a one year exemption period for properties with over 3 acres.
If you are a homeowner in distress, do not wait to see what happens!!! If you do nothing after receiving a foreclosure notice, YOU WILL LOSE YOUR HOME! They are not kidding around, and there are no do-overs. The mortgage company will follow it's foreclosure procedures.
As soon as you know you may not be able to make the mortgage payments on your home, contact a Realtor® to find out what your options are, and seek the advice of a real estate attorney.
You may be able to do a short sale, deed in lieu, cash for keys, or loan modification that will not totally kill your credit for years. It doesn't cost a thing to explore your options, so contact a Realtor® sooner, not later!