Re: Trying to Buy a Foreclosed House in Michigan
yes, there is a redemption period. It varies from 30 days to 1 year, depending on the situation. In this case, since it appears the property has been abandoned, the redemption period should be reduced to the 30 day period. The problem with that is the lender has to have either observed the abandoned condition or sent notice to the debtor stating they consider the property abandoned which the debtor has not responded to. If they haven't, the time period changes. The next period is for residential properties with less than 4 units on the property nor includes more than 3 acres. Then, the the debt owed is at least 2/3 of the original debt, the period is 6 months. If neither of those situations apply, the redemption period is 1 year.
As to the security deposit situation: if that is what the lender chooses to impose, they can. What you need to do is attempt to discover whether the unit was used as a rental or was owner occupied. If owner occupied, you would be safe. If it was a rental, either figure out if and how much any deposit owed is or pass on the sale.
I am not an attorney and any advice is not to be construed as legal advice. You might even want to ignore my advice. Actually, there are plenty of real attorneys that you might want to ignore as well.