Special offer

Miscellaneous Michigan Short Sale Questions from Denise

By
Services for Real Estate Pros with Great Lakes Home Solutions, Inc.

Last week, over the course of 3-4 emails I received several questions from Denise Suerth, a REALTOR® with Five Star Real Estate in Grand Rapids. She gave me permission to turn this into a little Q&A Post for the BLOG. Let's jump in to them (keeping in mind that Michigan is a redemption State).

I also thought that a short sale couldn't happen unless the seller's had the home as their Principal Residence. What light can you shed on this?

Sure, this is an easy one. A very common misconception and I'm not really sure where it came from. Plain and simple - any house is eligible for a short sale. Some lenders may choose to say "no" based on a many different issues. Some investors have their own guidelines (for example for FHA, if the seller moves out, they have to have an acceptable reason for the move or FHA won't approve the short sale). There are always exceptions to any rule, but in general, a short sale is doable on just about any property.

Once a bank buys a property back at the Sheriffs sale, can the home owners move back in (they've moved out, but had all the furnishings left there) and commence with the short sale process in the 6 month redemption period?

Yes, as long as the bank does not shorten the redemption period to 30 days (which they have the power to do if it's legally declared abandoned by the bank). We have processes in place to help insure that does not happen for our Inner Circle and Elite REALTORS®.

The property had been up for short sale and had 2 other lien holders, so I'm assuming that now the Bank bought it at the sheriff sale that those lien holders go away?

That's a common misconception (junior lines going away after the foreclosure sale). These are still valid liens until the end of the redemption period. They will need to be "shorted" just as if it were before the foreclosure sale.

We're putting the final touches on our first "Love/Hate" report (top 5 and bottom 5 lenders to work with on short sales). This should be out next week - stay tuned!

Dedicated To Your Success,
Joel

Short Sale Negotiations: you earn FULL COMMISSION and no fee to buyer/seller - www.GreatLakesShortSales.com

Comments(1)

Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

The redemption period can be a great tool to help homeowners. . too bad it is not in force in all the States of America

Feb 24, 2010 10:16 PM