Up until just recently, a party that purchased a property from a foreclosure sale had very little legal standing to accelerate the redemption period.This was true even when the subject property fell into a state of disrepair.
This situation created substantial strife for the purchaser who saw their investment decrease in value – sometimes substantially – and for the surrounding community that experienced the hardship of having a deteriorating home within the community. Such deterioration not only impacts the perception of the community as a whole, the deteriorating property can also be a breeding ground for criminal activity and for situations that can cause property damage to surrounding homes.
Unfortunately, Michigan real property laws prior to 2015 only gave rights to the original mortgage holder without extending those acceleration rights to purchasers of foreclosed real property in Michigan.
The Little-Known Techniques to Accelerate Your Interest in a Foreclosed Property
Many real estate professionals – attorneys included – are not aware that the Michigan legislature passed MCL 600.3238 in 2015. This statute provides a legal mechanism for foreclosure purchasers to pursue an acceleration of the redemption period when the property falls into a state of disrepair.
The mechanism also exists to accelerate the redemption period even if the foreclosed party refuses reasonable requests for interior and exterior inspections.
Faster Acceleration of Your Interest in Foreclosure Means Better, Safer Communities
This GOOD NEWS means that we no longer have to watch a foreclosed property fall into a state of disrepair with no legal mechanism to transfer full rights to those purchasers that are ready, willing, and able to immediately improve the property thereby immediately improving the surrounding community.
Here at Stout Law, you can be assured that our team will research any applicable laws – turn over every rock -- in a concerted effort to accomplish your real estate investment goals.