Posted by Tom (MI) on September 24, 2003 at 24:30:15:
Could be up to a year if it is more than 3 acres. The majority I come across is 6 months like you said.
Tom
Question for JT-IN or f/c experts - Posted by astalt(MI)
Posted by astalt(MI) on September 23, 2003 at 14:34:11:
I am looking at a property in which there were 2 liens. The lienholder in 2nd position foreclosed on the property last fall and recevied a sheriff’s deed. What must they have done at that point vis-a-vis the first lienholder to protect their postion?
Later, around Feruary timeframe, the 1st lienholder foreclosed on the property and received a sheriff’s deed as well. Whose property is it at this point?
–Al
Both Marcos & Tom are correct - Posted by JT-IN
Posted by JT-IN on September 23, 2003 at 21:02:17:
The 2nd could have at any time either brought the 1st current prior to the auction brought about by the 1st mtg. They could have also redeemed following the sale by the 1st, subject to MI law.
Kind of strange here that the 2nd would go to the extent of foreclosing, then not defend their position by outbidding the 1st mtg holder, in the foreclosure sale brought about by the 1st mortgage holder. Some things never cease to amaze me in this business… in fact Saturday morning cartoons could be written about some of the bone-head moves that Lenders make in protecting, (or failing to do so) their mtg positions. This is Jerry Lewis silly, if you ask me…
JT-IN
Re: Question for JT-IN or f/c experts - Posted by Marcos
Posted by Marcos on September 23, 2003 at 15:57:58:
The first now owns the property. The superior lien wiped out the ownership of the junior lien when they completed their foreclosure. To put it simply, if the first lien takes a property to sale, and gets the property back. All other liens and rights of ownership are now wiped off. Whether the second owns it, the original owner, or George Bush. There are some very rare exceptions where the property can be redeemed. As in IRS liens. They have 120 days to redeem. Rarely do, but it does happen.
To answer your other question about what can the second do when they became the owner. They always had the right to reinstate the first and protect their position. Or, they can sell the property before the first takes it to sale. Or as you saw happen, they did nothing, and got wiped off. I could spend a day explaining all the stupid things banks do. And we still wouldn’t be done.
Hope this helps,
Marcos
Re: Question for JT-IN or f/c experts - Posted by Tom (MI)
Posted by Tom (MI) on September 23, 2003 at 18:43:41:
We also have a redemption period in Michigan so that would also come into play.
Tom
Redemption Period is gone… - Posted by JT-IN
Posted by JT-IN on September 23, 2003 at 20:55:01:
If the foreclosure was in February…
If I understand MI redemptions correctly… 180 days if occupied, and 30 days if certified abandoned property… Either way February makes it minimally 200+ days, by now…
Certainly open for correction, as I do not practice in the State of MI…
JT-IN
Re: Redemption Period is gone… - Posted by rm
Posted by rm on September 24, 2003 at 08:00:38:
And, while you’d think that the lenders would want to quickly put the property up for sale, I’ve seen some sit for a few years.
I just recently spoke to an owner who no longer lives in the property, the mortgage was bought by Eastern (?) and they won’t foreclose, and they refuse to accept less than the balance owed.
Another cartoon episode…