What Happens After Foreclosure?

by Trevor Sines on January 20, 2011

After your home is sold at the Sheriff Sale you enter into the redemption period. In the state of Michigan this period is usually six months. During this redemption period you may redeem the property as your own if you can pay off the balance owed to the mortgage company, plus legal fees. This does not happen very often because it is nearly impossible for a homeowner to get new financing at this point.

After the redemption period is over you automatically become a tenant in the house you formally owned. At this point the new owner must follow the legal procedures for eviction. Again this will vary widely from state to state and you should be consulting with an attorney with expertise in this field if your case has gone this far. The process in Michigan is as follows:

When someone has taken your house at foreclosure they can send you a legal notice to leave the premises under a 72 hour notice.

If you fail to leave after the 72 hours has elapsed the new owner must go to court to present his case before a judge that you should be evicted.

At a hearing the judge will decide if you are to be evicted or not as well as how long you may stay in the house before you must go. Your willingness to pay rent will play a large role in granting more time.

If the judge finds against you and you are unhappy with his ruling you have 10 days to appeal his decision.

If you have been ordered evicted and you have not moved out on your own by the day designated by the court the new owner may obtain an execution of the eviction judgment which will give a sheriff the right to physically remove you from the premises.

A sheriff gives you notice of the execution and as little as 48 hours to move.

Anything left in the house is moved by the sheriff into storage, where you will have to pay fees to get it back, locks are changed; resistance at this point may subject you to arrest.

The eviction process can take anywhere from 6 weeks to 6 months. The average eviction is around 10 weeks.

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{ 2 comments… read them below or add one }

lynn February 15, 2011 at 9:54 am

If you have a potential buyer do while in foreclosure who do you contact first?

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Trevor Sines February 15, 2011 at 11:11 am

You should contact your mortgage servicer immediately so they can postpone any upcoming foreclosure sale while they review the offer. The offer must be reasonable, in writing, and usually the home must be listed by a realtor. At that point, you must wait for the bank to accept the offer which could take several months.

If by chance, the foreclosure sale has already happened, and you sell the home for more than what it sold for at auction, you get to keep the profit. It’s kind of wierd and it rarely happens, but it is possible depending on what the home sells for at auction. I hope this helps.

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