Default Property Flip Opportunity in Detroit

[Kirsten Gerbi]

I am currently assisting someone with the sale of their home. It is in disrepair and would need significant rehab to be marketable but there are no liens and the ARV is $315,000. She has been transferred to a new living situation due to health reasons and can no longer pay both her mortgage and the monthly rent at the new place. A real estate agent in Detroit informed me that the home could not change hands if it was in default. I've never heard of this restriction. Can anyone point me in the direction of the foreclosure laws in Detroit? Or know any investors that might be interested in a flip opportunity?

Thanks!

Kirsten