Rent w/ Option going to Sherriff Sale

I received notice today that the sale will be held on Sept 16th. I live in MI. The notice also states that there is a 6 month redemption period. I will pay Sept 1st rent on time as usual. If the sale takes place, I'll be there, then am I lawfully off the hook when it comes to paying rent to the LL? Meaning, can I lawfully stay in the house for those six months rent free? And is the LL required to give me my $4k option back?

TIA

Was this a foreclosure sale, or a sale because of tax liens? Once the house is sold at auction and the new title is recorded, the current owner has no ownership in the house. But as you have found out, even that sale is not final. That 6 month redemption period allows the LL to retake possession of the house within that time by paying what was owed (which is why it sounds like a tax lien sale). If he retakes possession and you haven't been paying rent for that period, except to move soon after. If a new owner buys the house and records title, expect to get a 30 day notice to move.

If I were you, I wouldn't pay rent to the old owner after the sale (providing the sale happens), but save that money in the bank in case he retakes possession and asks where you rent is. You'll need it to move out quickly.

Now the LL thinks he can put the house up for a short sale. We signed a contract for the option to buy. Can he do this without our approval?

He's offered 3 months of no rent to repay our $4k option. Then if we are still here we would start paying rent again. I think he's nearing a BK discharge and doesn't want me to sue him.

Can he get the house out of foreclosure just 3 weeks from the sherriff sale? He's been laid off and has no means to pay the mortgage. Will the bank agree to a short sale at this point? Don't you have to be at least 3-4 months behind to get to the point of a sherriff sale?

I need to talk to a lawyer!

To answer the previous poster:

it's not a tax sale. he's not making mortgage payments.

He can pull it out of foreclosure, even 6 months AFTER the sale! All he has to do is to pay what he owes at that time.

Are you in position to buy the house now? If so, you can buy it at a short sale. If not, since he's going into BK, he'll probably include any money he owes you on that. If he does, it won't do you any good to sue because your debt willl have been discharged.

Banks now have waaaaay too many foreclosures on their hands. If they can get a short sale for close to the amount owed, they're going to take it.