Legal Question in Real Estate Law in Michigan

I am purchasing a foreclosed home as a rental property. There is an "arms length" requirement that I am not allowed to rent the property to the previous owner. Is that legal? Thank you.


Asked on 10/18/10, 3:42 pm

1 Answer from Attorneys
Shelly Schellenberg MI & FL private practice

Yes, the owner is not permitted to benefit from the foreclosure if the bank made concessions, and did not pursue the owner for the "deficiency", legal fees, court costs, etc. You need to read the foreclosure documents, as well as the sale documents. The bank may impose these restrictions to prevent family members from profiting from the foreclosure. You may need a real estate attorney to review the actual documents to be sure of your limitations.

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Answered on 10/23/10, 4:46 pm


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