What Does It Cost to Redeem Your Home After a Michigan Sheriff's Sale?

After a sheriff’s sale, the question changes. It stops being “can I stop this?” and becomes something much more concrete: what would it actually cost to get my house back? That is a fair question, and in Michigan it has a real, calculable answer — not a mystery number the bank invents.

Michigan law spells out exactly what goes into a redemption figure. Once you know the parts, you can check the math yourself, decide whether redeeming makes sense against your equity, and stop guessing. Here is how it works.

Where the number starts: the sheriff’s deed

At a Michigan sheriff’s sale and redemption period, the property is sold to the highest bidder and the sheriff issues a deed. That deed is a document you should get a copy of immediately, because it states two things you need: the amount the property sold for, and the date your redemption period expires.

Under MCL 600.3240, redemption starts with that bid amount — the price the winning bidder paid at the sale. Often the foreclosing lender is the bidder and bids roughly what it is owed, but not always. If a third-party investor bid higher, the redemption figure is based on the higher bid, not on your old loan balance.

Title does not pass to the purchaser until redemption expires (MCL 600.3236). Until that day, you still own the home, you still live there, and you owe no rent to the purchaser.

What gets added on top

The bid amount is the floor, not the total. Michigan law lets the purchaser add specific, documented items:

• Interest from the day of the sale, at the rate written in your mortgage or land contract — not a new rate the purchaser picks. This is usually expressed as a per diem: a fixed dollar amount that accrues each day. In a real Michigan case, a $46,525 bid accrued $7.84 per day.
• Property taxes the purchaser paid after the sale to keep the taxes current, plus interest on those advances at the mortgage rate.
• Insurance premiums the purchaser paid to keep coverage in force through the redemption period, again with interest.
• Condominium or association assessments paid by the purchaser, where applicable.
• The sheriff’s fee paid by the purchaser under MCL 600.2558(2)(q).
• A $5.00 care-and-custody fee if you pay the money to the register of deeds rather than directly to the purchaser.

The important protection: those post-sale advances only count if the purchaser documents them. The statute requires an affidavit with receipts, recorded with the register of deeds, before those amounts can be tacked on. If a purchaser tells you a large number over the phone and cannot point to a recorded affidavit backing it, that number is not the redemption amount. Ask for it in writing.

Who tells you the exact figure — and who does not

This trips up more Michigan homeowners than anything else in the process: the register of deeds does not calculate your redemption amount. In Wayne County, the office is clear about it. The purchaser of the sheriff’s deed — or the designee the purchaser names in the recorded affidavit — is the party that states the exact amount required to redeem, including the daily per diem and the final date. A named designee in Wayne County may charge a fee for producing that statement (capped at $250 since late 2019).

Two ways to pay, both valid:

1. Pay the purchaser or the purchaser’s designee directly, and get a certificate or written acknowledgment of redemption to record.
2. Deposit the funds with the register of deeds, who holds the money on the purchaser’s behalf. This route adds the $5.00 fee, and it is the safer route when the purchaser is unresponsive or you are close to the deadline. In Wayne County, the Register of Deeds general line is 313-224-5850.

Whichever route you choose, keep every receipt and make sure the redemption is recorded. That recording is what makes the sheriff’s deed void and puts your title back where it belongs.

It is all or nothing — and there is a deadline

Michigan redemption is a lump-sum right. There is no partial redemption, no monthly plan, no “I’ll pay half now.” The full amount has to land before the redemption period expires, and courts have been unforgiving about late payments.

How long you have depends on the property, and it is stated on the sheriff’s deed:

Because interest accrues daily, redeeming in month two costs less than redeeming in month six. Ask for a per diem figure and a payoff good through a specific date, then work backward from that date.

Deciding whether redeeming is the right move

Run the arithmetic plainly. Take the home’s realistic market value, subtract the redemption amount and anything else that survives the sale — delinquent property taxes are their own separate clock under Michigan property tax foreclosure rules, and junior liens may still be out there. What is left is your equity, and that equity is yours, not the auction’s.

If that number is meaningfully positive, you have leverage and generally three paths:

• Redeem using cash, family help, or equity-based financing such as a foreclosure bailout loan in Michigan, and keep the house.
• Sell during redemption. You still own the home, so you can still sell it — the redemption amount simply gets paid off at closing and you walk away with the difference. Our guide on how fast you can sell a house before foreclosure covers realistic timelines.
• Claim surplus proceeds. If the sale brought in more than what was owed, MCL 600.3252 lets you file a verified written claim for the difference.

If the number is negative — you owe more than the home is worth — redeeming rarely makes sense, and the more useful conversation is about the foreclosure alternatives available to Michigan homeowners and how to exit without a deficiency surprise.

A short, practical checklist

• Get a copy of the sheriff’s deed and write the redemption expiry date on your calendar.
• Request the exact redemption amount, in writing, from the purchaser or the designee named in the recorded affidavit — including the per diem.
• Pull the recorded affidavits at the register of deeds and check that every added tax or insurance advance has a receipt behind it.
• Get a realistic value on the home so you know what your equity actually is.
• Talk to a free HUD-approved housing counselor (HUD, 800-569-4287) or MSHDA before you pay anyone a fee. Michigan’s Credit Services Protection Act bars advance fees for foreclosure-prevention services.
• Line up funds early. A redemption that closes with two weeks to spare costs less and sleeps better than one that closes on the last afternoon.

A sheriff’s sale feels like an ending. In Michigan, legally, it is a checkpoint — and the homeowners who come through it best are simply the ones who got the real number, checked it, and started making calls while the clock still had months on it.

All In Horizon provides asset-based bridge financing. Loan availability, terms, and timing depend on the property, equity position, and exit plan, and are subject to underwriting. This article is educational and is not financial, legal, or tax advice. Nothing here is a substitute for guidance from a licensed attorney.