If you are behind on your mortgage payments the note-holder may institute foreclosure proceedings against you. At any time prior to the sheriff’s sale, Michigan recognizes the law of equitable redemption meaning that if you can pay the full amount past due and the costs associated with the process you may “equitably redeem” your mortgage. This means that they cannot foreclose on your house (the amount may change if you have an acceleration clause, and the law is very different with respect to land contracts). However, even if the sheriff’s sale has already occurred Michigan recognizes an additional protection for residential homeowners: Statutory redemption. But How long is Michigan’s statutory Redemption Period? Under Michigan statute a homeowner usually has six months during which if they are able to pay the full amount that the house was bought for at the sheriff’s sale, they can “redeem” or get the house back. Further, this right of redemption is alienable.
Now though, the Michigan legislature is considering reducing the statutory redemption period from six months to 60 days. Despite the fact that it is reported than less than 1% of eligible former homeowner’s take advantage of the redemption period, this is still not a popular suggestion. However, its proponents suggest it will serve as a means to deter blight and get abandoned homes back on the market. Others suggest that this will hurt a fragile housing market, despite an amendment the period to four months if there is proof of a listing to appease real estate agents who argued that 60 days is insufficient time to process a short sale. The Senate may vote on the legislation as early as this week.