My question involves a foreclosure in the State of: Michigan
I'm in Michigan and have had my house foreclosed on by the first mortgage. The house was sold at auction for $11K (Which satisfied the first) and bought by a private individual. The second mortgager Citi mortgage has contacted this individual and wants to buy the house from him so they can complete another foreclosure on the 2nd, which is about $71K. Yes the second is more than the first because of a refinace I did and a screw up on Citi's part. First, does Michigan allow the mortgagor to redeem the house in the 6-month redemption period just as they do the owner? Why would Citi buy this back when the house only got (2) bids in the first auction (one by the first and one by the private individual) for $11K? I'm going to be on the hook for the deficiency but would like to understand the game Citi is playing.