A Foreclosed home or property is also referred to  as a Bank Owned Home, a Repo (repossessed home), REO (real estate owned) or a HUD Home (Department of Housing and Urban Development.  All meaning the same thing.... the home owner has stopped making payments.  The home  has gone to sheriff sale or public auction.  The bank or winning bidder now owns the home.  

After the redemption period (The time a home owner has to redeem the home if fees and penalties and any outstanding liens against the property are paid off)  the previous home owner will been relinquish any and or all rights to the property and the homeowner will be evicted.

The property will become vacant and be able to be sold on the open market.  The banks and/or lenders do not want these liabilities on their books.  These properties do not bring a cash flow to the bank or lender. Foreclosed Homes usually become a bargain for you as the bank will price these properties below market value for a quick sale.

                Typical   Foreclosure   Time   Line   For   Michigan        

If your mortgage is due on the first and payment is not received, you will be considered delinquent on the second of the month.

 The first notice of delinquency is mailed on the 16th of the month. You are charged a late fee.

If you do not pay by the 30th, the loan is in default; you are sent a second notice.

 When a loan is 60 days past due, your bank, credit union or mortgage company speeds up the loan and warns you that foreclosure is the next step.

 After 90 days past due, foreclosure begins. In Michigan, the most common foreclosure is by advertisement.

 The attorney for your bank, credit union or Mortgage Company advertises the property for sale in a newspaper for four weeks in a row.

 A sheriff s sale is held on the published date. A deputy conducts an auction and the highest bidder wins (usually the bank). If the sale is adjourned (delayed), a notice is posted at the sale location and in the newspaper.

 After the sale, the highest bidder gets a sheriff s deed . It lists the last date that you can redeem (take back) the property, usually in six months one year.

 During the redemption period, you can raise the necessary money to get the property back by getting a new mortgage or you can sell the property or you can live in it for free and leave by the end date.

 In order to get your property back, you must pay off the mortgage, interest and late fees, court costs, attorney fees, title and appraisal fees, taxes and insurance.

 In order to sell the property, you must pay everything listed above or in the case of a short sale, get permission and a waiver of deficiency from the bank.

In order to live in the home until the end of the redemption period (usually six months), you pay the utilities and do general upkeep.

Short sales and foreclosures in Livingston County Michigan including Brighton, Howell, Hamburg, Hartland, Pinckney, Whitmore Lake, Byron, Webberville, Williamston, and Fowlerville will account to near 40% of the sales in 2009 and 2010