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Can anyone explain Michigan short sales law? ?

When exactly is foreclosure, before or after the redemption period

Public Comments

1. It is not at all clear what you are asking with regard to a short sales law. A short sale is simply a sale where the bank will come up short because they will not receive all the money that is owed to them. A short sale occurs when the bank agrees to take less than the amount owed by the buyer. A foreclosure is like repossession. Everybody knows how that works with a car. Somebody just backs up to your car and tows it away. It is harder with a house and they can't usually tow it away. They have to go through a series of legal steps even when the process is streamlined by implementing a trustee sale (commonly referred to as a foreclosure even though it is technically different--and simpler). While a home is being foreclosed on, there is a redemption period when an owner can get their property returned to them by paying the money that they owe to their lender. Once a home has gone into foreclosure, many people get a mistaken notion that they will be able to successfully redeem the property and get it back, but it is usually just wishful thinking on the home owner's part. Catching up on back payments becomes such a burden for most people that the hope of satisfying the bank and getting a home back is most often quite unrealistic and people who try to do it just end up losing more money. Foreclosure is a time consuming process, mostly because of laws that safeguard the rights of home owners. Part of the seemingly long process involves waiting for statuatory redemption periods to expire. If a home owner is trying to avoid finalizing the foreclosure, it can often take a very long time--months certainly and more than a year is not uncommon. To someone who wants to buy such a property it will likely seem to take forever before it becomes available to purchase.
2. This website might explain it. http://michigan.gov/mshda/0,1607,7-141-45866_47905-177801--,00.html Look under stages of foreclosure for an explaination. A short sale usually is negotiated with a lender(s). They usually ask the homeowner to provide information about their world-wide holdings and debt. This would include any retirement accounts. The lender(s) will then decide if they will accept less for the property than they are owed. Some are now offering XXX years to pay off the difference at zero or very low interest rates.