Learn Something New Today - Michigan Redemption

[Chris Seveney]

Saw a post today on social media where a first position lien filed for foreclosure. The sale occurred and in MI there is a redemption period (varies between 6-12 months). The property also had a 2nd position lien on the property. 

What I learned was if the borrower does redeem the property out of foreclosure, it is as if the foreclosure never happened so the 2nd position lien would not be stripped (whereas if the FC went through and the sale price did not cover the liens senior to the 2nd then the 2nd would be wiped).

I would guess this would be the same in Alabama and other states that have redemption periods. Just wanted to share.