Foreclosure On House and Tenants

[Maggiethecat]

What is the name of your state? Michigan

Hi, I have many issues, but I have this question about one of them. I am renting my house to tenants and my mortgage company put a notice of foreclosure on the door last week because I was behind. Would it be advisable to evict the tenants (I have issues of bounced checks, failure to pay late fees and general nuisance violations) and move back into the property myself while I try for redemption? At the moment I am in another state and think that doing this from here might be impossible. What kind of rights do they have if I let them remain there and what possible liabilty am I facing if they leave the house abandoned?

[Who's Liable?]

Originally Posted by Maggiethecat

What is the name of your state? Michigan

Hi, I have many issues, but I have this question about one of them. I am renting my house to tenants and my mortgage company put a notice of foreclosure on the door last week because I was behind. Would it be advisable to evict the tenants (I have issues of bounced checks, failure to pay late fees and general nuisance violations) and move back into the property myself while I try for redemption? At the moment I am in another state and think that doing this from here might be impossible. What kind of rights do they have if I let them remain there and what possible liabilty am I facing if they leave the house abandoned?

You cannot evict your tenants. They have a legal right to stay there for the term of their lease with you. The bank will evict them. You have no legal right to move in...

[Maggiethecat]

Originally Posted by Who's Liable?

You cannot evict your tenants. They have a legal right to stay there for the term of their lease with you. The bank will evict them. You have no legal right to move in...

I meant that I have issues that I could legally evict them for already. I was asking if I evict them (LEGALLY) would it be better for me or should I try to keep working with them?

[Alaska landlord]

When tenants are unable to pay the rent what you do is evict them. You don’t wait until it gets so bad that you lose your property

[Maggiethecat]

Originally Posted by Alaska landlord

When tenants are unable to pay the rent what you do is evict them. You don’t wait until it gets so bad that you lose your property

As I said in my original post, I'm generously overlooking some lease violations, which are not the reason for the foreclosure. But thanks for that advice. What i want to know is whether it's to my advantage to occupy the property myself during the foreclosure action.

In other words, in what way does the occupancy status work in the foreclosure?

[LindaP777]

Originally Posted by LawRef

Under Michigan foreclosure law, people are allowed to live in the residence for 6 months, it does not matter if it is you.

HOLY COW! That's ridiculous! In Ohio, once the house has been to sheriff's sale, the owners have 30 days to redeem - the free ride ends! If they do not, the owner file a writ of possession and they get 3 days to get out!

[seniorjudge]

That's going to hurt the mortgage market in Michigan!

[LindaP777]

hmm, mmm, mmm <<<shaking head>>> It's not bad enough that the home owner reneges on his contract (mortgage), but then he gets to live there free (actually on the banks dime, as they have to pay taxes and insurance, I would assume) for an additional 6 months! I sure wouldn't want to be a bank in Michigan! (Are interest rates higher? The carry costs on a foreclosure/REO for banks in Michigan would cut down on their profit.)

[Alaska landlord]

That little piece of legislation probably got someone re-elected. The masses love to stick it to "the rich"

[divona2000]

"It's not bad enough that the home owner reneges on his contract (mortgage), but then he gets to live there free (actually on the banks dime, as they have to pay taxes and insurance, I would assume) for an additional 6 months!"
LindaP777, Hi, just a bit of info-in Michigan, the redemption period can even be 12 months depending on the property acreage...but the owner/mortgage holder does NOT get to live there "rent free" for the redemption period! (I just went through this last summer-the usual divorce stuff. The mortgage co. and the Sherriff's Dept. told me that once the house sold at forclosure sale, the new owners would have the Sherriff evict me...or I could leave before then). If one can come up with the redemption $$ within 6/12 months, THEN they can get the house back-presumably complete with whoever is then living there... (my home was sold by real estate hours before it went to foreclosure sale).