20 November 2023
/ Benjamin N. Hoen
Shareholder Ben Hoen Reflects on Foreclosure Redemption Statute in ALFN Magazine
CLEVELAND - Weltman, Weinberg & Reis Co., LPA, a full-service creditors' rights law firm with over 93 years of client service, is pleased to announce that shareholder Ben Hoen was recently published in the American Legal & Financial Network (ALFN) ANGLE Magazine with an article titled, Michigan Court of Appeals Clarifies Foreclosure Redemption Statute (page 34).
ANGLE is the ALFN’s flagship publication published quarterly. The magazine features in-depth legal analysis of local, state, and federal laws affecting mortgage servicing, bankruptcy, and foreclosure throughout the country. Readers will find member spotlights, state snapshots, infographics, and feature-length articles in each issue of the ANGLE.
ANGLE is the ALFN’s flagship publication published quarterly. The magazine features in-depth legal analysis of local, state, and federal laws affecting mortgage servicing, bankruptcy, and foreclosure throughout the country. Readers will find member spotlights, state snapshots, infographics, and feature-length articles in each issue of the ANGLE.
In a recent Michigan Court of Appeals decision, the court affirmed that a second-lien foreclosure sale purchaser, and anyone who buys the property from that purchaser, step into the shoes of the mortgagor and has the right to redeem the property from a subsequent senior-lien foreclosure sale purchaser.
In this case, a homeowner took out a first and second mortgage on their property. At some point in time, they stopped paying their second mortgage. The second mortgage lienholder brought a foreclosure action by publication. At the sale, the sheriff struck off the property to a third-party purchaser. Following the sale, the statutory redemption period expired without the homeowner redeeming the property. The third-party purchaser then transferred the property to HP Foreclosure Solution, LLC (“HP”).
Several months later, the homeowner also stopped paying their first mortgage, and the first mortgage lienholder brought a foreclosure sale by publication. At the sale, the sheriff struck off the property to a different third-party purchaser. When HP offered a payment to redeem the property from the new purchaser during the statutory redemption period, the new purchaser rejected the payment.
In this case, a homeowner took out a first and second mortgage on their property. At some point in time, they stopped paying their second mortgage. The second mortgage lienholder brought a foreclosure action by publication. At the sale, the sheriff struck off the property to a third-party purchaser. Following the sale, the statutory redemption period expired without the homeowner redeeming the property. The third-party purchaser then transferred the property to HP Foreclosure Solution, LLC (“HP”).
Several months later, the homeowner also stopped paying their first mortgage, and the first mortgage lienholder brought a foreclosure sale by publication. At the sale, the sheriff struck off the property to a different third-party purchaser. When HP offered a payment to redeem the property from the new purchaser during the statutory redemption period, the new purchaser rejected the payment.
Read the full article and magazine edition by visiting the ALFN website here. If you have additional questions about this topic, feel free to contact Ben at any time.
This blog is not a solicitation for business, and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
