HomeBlogReasons to SellCan You Get Your House In Detroit Back After Foreclosure? Share on Like what you see? Share with a friend. Can You Get Your House In Detroit Back After Foreclosure? Chris Kirshenboim | August 11, 2022 After a Michigan sheriff’s sale, many homeowners are surprised to learn that the foreclosure is not yet final. Michigan law gives the former homeowner a period of time - called the redemption period - during which they can reclaim the property by paying a defined amount. This guide explains how that right works, what it costs, what you can and cannot do during the redemption window, and how to think honestly about whether redemption is a realistic option for your situation. What Happens to Your House After a Michigan Sheriff’s Sale? When a Michigan property goes through the non-judicial foreclosure process, the final public event is the sheriff’s sale - an auction at which the property is sold to the highest bidder. In most cases, the lender bids in the amount owed and takes title. Third-party investors or buyers may also bid if they believe the property is worth more than the outstanding debt. The sheriff’s sale does not transfer final title immediately. Under Michigan law, the former homeowner retains a statutory right of redemption for a defined period after the sale. During that period, the property is technically in a state of transition - the high bidder at the sale holds a sheriff’s deed that will become effective only after the redemption period expires without a redemption taking place. The Michigan Right of Redemption: What It Actually Means The right of redemption means you have the legal ability to "buy back" the property after the sheriff’s sale by paying the redemption price within the redemption window. This right is established in Michigan statute (MCL 600.3236 and related sections) and cannot be waived by the lender or removed from the foreclosure process. To redeem, you must pay the redemption amount to the county sheriff’s office or the appropriate court officer before the deadline. The payment must cover the full amount required under the statute - partial payment does not extend or preserve the redemption right. How Much Does It Cost to Redeem? The redemption price is not simply the outstanding mortgage balance. It is calculated as: The amount paid by the winning bidder at the sheriff’s sale (which may be the full debt amount if the lender bid it in) Plus interest on that amount at the rate specified in the mortgage, calculated from the date of the sale Plus any costs and fees the winning bidder has incurred in connection with the property (certain fees are capped under the statute) In practical terms, if a $120,000 home was sold at a sheriff’s sale for $115,000, redeeming it would require paying roughly $115,000 plus accumulated interest and allowable costs - potentially $118,000-122,000 or more depending on the interest rate and how far into the redemption period the payment is made. The redemption amount increases the longer you wait to redeem. Request the exact current redemption figure in writing from the county sheriff’s office or through a Michigan real estate attorney before planning any redemption strategy. The amount changes daily as interest accrues. What Is the Redemption Period Timeline in Michigan? The standard redemption period in Michigan is 6 months from the date of the sheriff’s sale. However, Michigan law provides for shorter redemption periods in specific circumstances: 1-month redemption period: If the court determines the property has been abandoned, the redemption period can be shortened to as little as one month. Lenders sometimes seek this determination for vacant or clearly abandoned properties in Wayne, Oakland, and Macomb Counties. Shortened periods for certain loan types: Some federally-backed loans have specific rules that can modify the standard timeline. Confirm your exact redemption period with a Michigan attorney if you are unsure. For homeowners in Inkster and throughout Wayne County who are in the redemption period, confirming the exact expiration date in writing - not just estimating based on the sale date - is critical. Missing the deadline by even one day forfeits all redemption rights permanently. Can You Still Live in the Home During the Redemption Period? Yes. Michigan law allows the former homeowner to remain in possession of the property throughout the redemption period. The high bidder at the sheriff’s sale cannot take possession until the redemption period expires without a redemption being completed. This means you have the legal right to occupy the home, maintain it, and conduct your affairs there for up to six months after the sale. This is a meaningful protection - it means you do not need to move immediately after the sheriff’s sale and have time to arrange your next steps without emergency housing pressure. However, you should continue to maintain the property during this period. A lender or winning bidder can petition to shorten the redemption period if they can demonstrate that the property is being damaged, stripped, or abandoned. Treating the property responsibly is both ethically appropriate and legally protective of your remaining redemption right. Can You Sell the Home During the Redemption Period? Yes - and this is one of the most important and underutilized options available to homeowners in the redemption window. You can sell the property during the redemption period, and if the sale price exceeds the redemption amount, any remaining proceeds belong to you. In practical terms, this means: If the home is worth more than the redemption payoff, you can sell it, use the proceeds to redeem (paying off the winning bidder at the sheriff’s sale), and keep the difference as equity. If the home is worth roughly the same as the redemption amount, the sale proceeds clear the obligation and you exit with little or no equity but with the foreclosure record effectively nullified by the redemption. If the home is worth less than the redemption amount, a sale alone will not fund a full redemption - additional funds would be needed, or a short sale approach through the lender may be necessary. Homeowners in Madison Heights and across Oakland County sometimes have sufficient equity in their property to execute a redemption-funded sale - even after a sheriff’s sale has occurred. The key is acting early in the redemption window to allow enough time for a sale to close before the deadline. A direct cash sale to Chris Buys Homes Detroit can close in 7-21 days in most situations, which may fit within the redemption window when a conventional listing would not. What Happens When the Redemption Period Expires Without Redemption? If the redemption period ends without the homeowner redeeming the property, the sheriff’s deed becomes effective and transfers full legal title to the winning bidder from the sale. At that point, the former homeowner’s right to the property is extinguished. The new owner can begin eviction proceedings if the former homeowner remains in possession. Once the redemption period expires, there is no further legal mechanism to reclaim the property. This is the true point of finality in the Michigan foreclosure process - not the sheriff’s sale itself, but the expiration of the redemption period without action. For homeowners in Clinton Township and throughout Macomb County facing this deadline, understanding the exact expiration date and acting well in advance is essential. Is Redemption Realistic? An Honest Assessment For most homeowners who have gone through a Michigan foreclosure, full monetary redemption - paying the complete redemption price in cash - is not a realistic option. The same financial circumstances that led to the foreclosure in the first place typically make it impossible to raise the full redemption amount within six months. If you could access that amount of money quickly, you likely would have used it to avoid the foreclosure entirely. The more practical redemption strategy is the sale-funded redemption described above: selling the property during the redemption period, using the proceeds to pay the redemption amount, and keeping any equity above that amount. This only works if the property has sufficient market value to cover the redemption payoff - which requires an honest assessment of the home’s current condition and realistic value against the redemption figure. If Redemption Is Not an Option: What Comes Next If redemption is not financially realistic and a sale during the redemption period is not possible, the practical focus shifts to the next chapter - finding stable housing, addressing any deficiency judgment risk Michigan lenders can pursue within 90 days of the sheriff’s sale, understanding the tax implications of the forgiven debt, and rebuilding credit from the foreclosure entry over time. If you are currently in the redemption period and are unsure whether a sale could fund a redemption, Chris Buys Homes Detroit can assess the property and present a cash offer quickly - at no cost and with no obligation. Understanding what the home is worth on the current market gives you a concrete data point to compare against your redemption amount. If the numbers work, a fast cash sale during the redemption window may allow you to start fresh with equity in hand rather than walking away with nothing when the period expires. Contact us today or call (313) 362-4747. We work with homeowners in all stages of the foreclosure and redemption process throughout Wayne, Oakland, and Macomb Counties.
