Foreclosure Redemption Period for Larger Land Parcels Changed

QUESTION: I am representing a seller whose house was foreclosed and purchased at a foreclosure sale by the bank on February 10, 2012. Their house is on a 3 ½-acre parcel of land. It is my understanding that the redemption period for parcels over 3 acres is one year. Am I correct?

ANSWER: NO. The law has been changed. The one-year redemption period now applies to property that is used for “agricultural purposes.”

There is a presumption that land is being used for “agricultural purposes” if prior to the sheriff’s sale, the property owner provides the lender with proof that the property owner filed a federal income tax form 1040 Schedule F for the preceding year. The property owner must also record an affidavit with the register of deeds for the county in which the property is located stating that such proof has been delivered to the
lender.

This new law was applied to all sheriff sales after February 1, 2012.