A Michigan lender completed a foreclosure by advertisement on a residential property. The redemption period expired without the mortgagor redeeming the property. The mortgagor is still living in the home. Which of the following correctly describes the lender's or purchaser's next legal step to obtain possession?
Correct Answer
A) The purchaser must file a summary proceedings (eviction) action in Michigan district court to obtain a judgment of possession
After the redemption period expires and the sheriff's deed is recorded, the purchaser holds title to the property. However, Michigan law does not permit self-help eviction. To obtain physical possession from a holdover occupant, the purchaser must file a summary proceedings (eviction) action in Michigan district court under MCL 600.5714 et seq. The court will issue a judgment for possession, and a writ of restitution will be executed by the court officer if the occupant does not voluntarily vacate.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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