Redemption

Redemption

125.1448i Redemption of premises; effect on deed of sale.  Sec. 48i.

The mortgagor; his or her heirs, executors, or administrators; or any person lawfully claiming from or under the mortgagor or the mortgagor's heirs, executors, or administrators may redeem the entire premises sold by paying, within 6 months from the time of the sale, to the purchaser; to the purchaser's executors, administrators, or assigns; or to the register of deeds in whose office the deed of sale is deposited as provided in the court rules, for the benefit of the purchaser, the sum which was bid with interest from the time of the sale at the rate percent borne by the mortgage. The vendee of a land contract; his or her heirs, executors, or administrators; or any person lawfully claiming from or under the vendee of a land contract or the heirs, executors, or administrators of the vendee of a land contract may redeem the entire premises sold within 6 months from the time of the sale by paying to the purchaser; to the purchaser's executors, administrators, or assigns; or to the register of deeds in whose office the deed of sale is deposited as provided in the court rules, for the benefit of the purchaser, the sum which was bid with interest from the time of the sale at the rate percent borne by the land contract. In case the sum is paid to the register of deeds the sum of $5.00 shall be paid to the register of deeds as a fee for the care and custody of the redemption money. After these sums have been paid the deed of sale is void and of no effect, but in case any distinct lot or parcel separately sold is redeemed, leaving a portion of the premises unredeemed, then the deed of sale is inoperative merely as to the portion or portions of the premises which are redeemed and to the portions not redeemed it remains valid and of full effect.  History: Add. 1981, Act 173, Imd. Eff. Dec. 10, 1981.

The borrower may redeem by paying the lender the sum for which the property was sold at foreclosure, plus interest at the same rate as the mortgage. If the foreclosure buyer recorded an affidavit stating how much in taxes and insurance the foreclosure buyer paid, following the foreclosure sale, then the borrower must repay that amount as part of the redemption process.

If a property is over four units or three acres and has not been abandoned, then the time period for redemption is one year from the date of the foreclosure sale. If the property has been abandoned, and if the balance is over two-thirds of the original loan, then the redemption period is one month. If the balance is two-thirds or less of the original loan, use one year. If the property is four units or less and does not exceed three acres in size, then two different redemption time periods apply.

If the mortgage was originated after 1965, and if the amount that remains unpaid on the loan is more than two-thirds of the original debt, then the borrower still has six months to redeem. If the unpaid balance on a mortgage is less than two-thirds of the original debt, then the borrower has only three months to redeem if the property has been abandoned.

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