Sheriff's Sale in Michigan
My question involves a foreclosure in the State of: Michigan
I live in lower Michigan. Yesterday my house was in the Sheriff's Sale. I was shocked to see the bid price at $37,950, when I owed over $181,000 on the mortgage. There were no 3rd party buyer's for any of the house's including mine.
Today I spoke with a realtor man, who also attended the sale that told me I could buy my house back at the $38,000 bid price during my six month redemption period. My question is, wouldn't I still owe the remaining $143,000 and couldn't the lender just put a lein on the house or a judgement for the balance? He claims I could get the deed and own my house. It is a little scary to me that I could put out my money and borrowed money from family just to be in bigger trouble.
I had lost my job for a few months and have been back in full swing since for the past month but not in enough time to stop the sale. Any answer's will help me greatly. I can provide more information about the location privately.
Thank You
Surviver1
Re: Sheriff's Sale in Michigan
That is not how it works.
The lender will post the property for a low price as what happend in your case. If somone bids the lender will continue to bid up against the person up to the amount you owe them.
The reason they do this is to save money on recording fees, taxes on the recording etc. They would have not have actually sold the house for that reduced amount at auction.
Since no one bid, they accomplished what they set out to do. They can record the re purchase for the low amount and save alot of money on the fees.
They will sell off the property at normal foreclosure price now and sue you for the deficiency.
Anyone who told you that you can re purchase the home for $38K is 100% wrong. That is not how it works.