Contracts
In Michigan, a 'foreclosure redemption right' on a land contract means:
AThe lender may redeem the property after the borrower pays off the loan
BThe defaulting buyer may reinstate or pay off the land contract within a specified period after a forfeiture action begins✓ Correct
CThe seller must wait 6 months before filing for forfeiture
DThe state may redeem any land contract property for public use
Explanation
In Michigan land contract forfeiture proceedings, the buyer typically has a right to redeem the property by paying all past-due amounts plus costs within a specified period after the forfeiture notice, reinstating their purchase rights.
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Key Terms to Know
Option Contract
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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