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A Michigan bank forecloses on a residential property in Dearborn through foreclosure by advertisement under MCL 600.3201 et seq. At the sheriff's sale, the bank bids the amount of the outstanding loan and receives a sheriff's certificate. The statutory redemption period is 6 months. During this period, the original homeowner, Carlos, remains in possession. After the 6-month period expires without redemption, the bank receives a Sheriff's Deed. Carlos now refuses to leave. Which of the following BEST describes the bank's legal position and next steps under Michigan law?

Correct Answer

A) The bank holds fee simple title via the Sheriff's Deed and must pursue summary proceedings (eviction) to remove Carlos

After the statutory redemption period expires and the bank receives the Sheriff's Deed under Michigan's foreclosure by advertisement statute (MCL 600.3201 et seq.), the bank holds fee simple title to the property. However, the bank cannot physically remove Carlos without going through the legal process. Under Michigan law, the bank must pursue summary proceedings (summary proceedings to recover possession of premises) under MCL 600.5714 et seq. — commonly known as an eviction or unlawful detainer action — to obtain a court order and writ of restitution to remove Carlos. Self-help eviction (physically removing a person without a court order) is illegal in Michigan.

Answer Options
A
The bank holds fee simple title via the Sheriff's Deed and must pursue summary proceedings (eviction) to remove Carlos
B
Carlos retains a right of occupancy for an additional 6 months after the redemption period expires under Michigan law
C
The bank immediately owns the property free and clear upon receiving the Sheriff's Deed and can physically remove Carlos
D
The bank must file a new foreclosure action in circuit court to obtain possession from Carlos

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Related Topics & Key Terms

Key Terms:

deed_typessheriffs_deedforeclosure_by_advertisementredemption_periodsummary_proceedingspossessionexpert_trap
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