A Michigan real estate salesperson is advising a client who is considering purchasing a property at a sheriff's sale. The salesperson should inform the client that after the purchase, the original homeowner may still reclaim the property during the redemption period by doing which of the following?
Correct Answer
B) Paying the full redemption amount including unpaid principal, interest, costs, and fees to the appropriate party
Under MCL 600.3240, a mortgagor may redeem the property after a sheriff's sale by paying the full redemption amount to the purchaser at the sale (or their assigns). The redemption amount includes the unpaid principal balance, accrued interest, costs of foreclosure, and any other charges allowed by the statute. This payment must be made before the redemption period expires.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
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