A buyer's agent in Michigan is representing a client who wants to purchase a home that is currently in the redemption period after a sheriff's sale. The redemption period has 4 months remaining. The buyer wants to move in as soon as possible. Which of the following most accurately describes the situation the buyer's agent must communicate to the client?
Correct Answer
A) The buyer can purchase the sheriff's sale purchaser's interest, but the original owner retains the right to redeem and remain in possession for the remaining 4 months
During the redemption period, the purchaser at the sheriff's sale holds an interest in the property that can be assigned or sold, but that interest is subject to the original mortgagor's right of redemption under MCL 600.3240 and the right of possession under MCL 600.3278. A buyer who acquires the sheriff's sale purchaser's interest takes subject to both of these rights — meaning the original owner may still redeem the property and remains entitled to possession for the duration of the redemption period.
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Related Topics & Key Terms
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Related Concepts
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
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.
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