Legal Question in Real Estate Law in Michigan
Foreclosure
In Michigan, if a home has a first mortgage and a second morgage and the first and the second mortgages are both in default. But only the first mortgage is in foreclosure and goes to sheriff sale, and is purchased by the first mortgage holder.
What happens to the second mortgage holders possition?
Secondly if the redemtion rights are used by the original borrower or someone he assignes those rights to, what happens to the second morgage holder possition.
Puzzeled in Michigan,
Asked on 3/23/04, 9:29 am
1 Answer from Attorneys
Don Darnell
Darnell & Lulgjuraj, P.C.
Re: Foreclosure
If the property is not redeemed, the person who purchased it at the sherrif's sale takes it for that price, and the 2nd mortgage is discharged. If it is redeemed, the 2nd is still a valid lien on the property.
Answered on 3/23/04, 10:36 am
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