How to safeguard property in redemption period after foreclosure?

[Andy K]

Hello all,

We purchased a non-performing note last year for a single family home in Detroit (Wayne County, MI). Our servicing company sent several letters to the borrower about doing a loan modification, but he never responded. A realtor we know in the area also went by the home a few times, but was not successful in finding the borrower at home. So, with no other option left, we began the foreclosure process in May, and the foreclosure auction took place in early August.

Michigan law allows the borrower 6 months redemption period from the foreclosure auction date, during which the borrower can live in the property. 

Our question is - since its 6 more months (early Feb of next year) before we can go on title, what can we do to keep the property safe from the borrower destroying it, or from it being vandalized during this time? We know there is a good chance the borrower is living in the property because he tried to delay/stop the foreclosure by sending a notice to the attorney asking for some documentation.  But he never responds to letters sent to him.

Any suggestions on what investors have done to protect their investment during the redemption period? If the property is damaged by the borrower or someone else, it will loose most of its value and become a loss to us (we have already spent quite a bit on this investment with the note purchase, monthly servicing fees, attorney costs for foreclosure, etc). Hence we would like to prevent that from happening.

Any suggestions are most appreciated. Thanks for your help.

- Andy.