Another bid computation issue that is often misunderstood is the application of anticipated post foreclosure expenses. Only those costs which have been expended as of the date of the foreclosure sale are to be added to the bid. MCL 600.3240 allows for the common expenses paid subsequent to foreclosure (during the redemption period), such as taxes, insurance and condominium dues, to be lawfully added to the redemption quote. Thus a mechanism exists for the foreclosing lender to be repaid for its post-foreclosure expenses whereas there is not any statutory support for non-accrued expenses to be prospectively added to the foreclosure bid.
Please address any questions regarding the above article to the undersigned.
Caleb Shureb, Esq.