Michigan situation guide · Updated November 2026

Wholesaling REO Bank-Owned Properties in Michigan

Q: Where can I find more on REO?

Start with our REO guide and foreclosure auction guide . They explain how banks end up owning houses after a sheriff's sale and how the redemption period affects whether a bank-owned house can be assigned to your own buyer later.

Wholesaling REO bank-owned properties in Michigan means getting a house under contract from a lender that took it back at foreclosure, then assigning that contract to a cash buyer. Banks want clean, fast exits and rarely care about the last few thousand dollars. Flint and the rest of Genesee County have plenty of these homes, but the price gap is thin, so you need to read the contract and the title carefully. Start with our REO guide if the term is new.

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The short answer

Can you wholesale a bank-owned property in Michigan?

Often yes, if the bank allows assignment and the redemption period has ended, but read the contract and check current rules. Ask the asset manager in writing whether assignment is allowed before you spend money on marketing.

An REO is a house the lender owns after a foreclosure sale. In Michigan most foreclosures run by advertisement under Chapter 32 of the Revised Judicature Act, and the buyer at the sheriff’s sale can lose the property if the owner redeems in time. For many 1-4 unit homes the statute sets a six-month redemption window, and shorter windows can apply to abandoned homes. Our redemption period guide explains how to read the dates.

So the first question on any bank file is whether the redemption period is over. If it is not, the former owner may still redeem, and a deal built on that house can fall apart. Pull the sheriff’s deed and the recorded history first, using our title search guide. Many banks also sell through listing agents and asset managers who use their own addenda, so expect an assignment clause to be negotiated, not assumed.

REO Bank-Owned Properties in Michigan at a glance

Seller	Lender or servicer, often through an asset manager
License	No wholesaler license in Michigan; broker rules can reach repeat dealers
Redemption	Generally six months for many 1-4 unit homes, shorter if abandoned
Seller disclosure	Foreclosing mortgagees are generally exempt from the statutory form
Transfer tax	State and county tax apply on deeds; check current rates
Title	Check the sheriff’s deed and any lingering liens

The opportunity

Why wholesaling REO bank-owned properties in Michigan can work

Genesee County has a long history of vacancy, and lenders sit on stock they would rather move than maintain. Flint has older bungalows near Kearsley Park and in the east-side neighborhoods that sell cheaply and need work. Banks price off broker opinions, so a fast cash close with no financing contingency has real value to them. Investors in Burton, Flushing and Grand Blanc also buy here, so your buyer list can stay local. Pair your leads with our cash buyer guide before you bid.

Fast closes

Asset managers like cash offers that skip lender approval. See how to write a wholesale offer.

Clean sellers

A bank has no emotional attachment, so negotiation is about numbers and timing.

Repeat volume

One asset manager can send several listings, which builds a steady pipeline.

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Lead sources

Where to find REO leads in Genesee County

Listing agents. Ask agents who handle bank inventory to send you new assignments before they go live.
MLS and portals. Filter for bank-owned status and sort by days on market.
County records. Watch sheriff’s deeds recorded with the Genesee County Register of Deeds.
Land bank. The Genesee County Land Bank has its own inventory with separate rules.
Driving routes. Vacant houses with lender lockboxes show up on a driving for dollars route.

Your exit

Who buys REO deals in Genesee County

Rehab investors pay the most when the numbers leave room for a roof and a furnace. Landlords buy the sturdier brick homes for rent. Both groups want the title cleared and the occupant situation known before they commit. A wholetail exit can work for the best houses.

Match each house to a buyer’s buy box and send a short package with photos, the sheriff’s deed and your assignment terms. If the buyer needs a double close, our double closing guide covers funding.

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Step by step

How to start wholesaling REO bank-owned properties in Michigan

Find the asset manager. Get the listing agent’s name and ask how they handle assignments.
Check redemption. Confirm the sheriff’s sale date and whether the redemption window has run.
Run the numbers. Use the ARV calculator and the MAO calculator with a real repair estimate.
Make the offer. Write a clear offer with a short inspection window and an assignment clause.
Disclose your role. Tell the seller you are an equitable-interest buyer and may assign.
Market to buyers. Send the deal to your list and to local landlords.
Close through title. Use an investor-friendly title company and confirm transfer tax.

Your checklist for wholesaling REO Bank-Owned Properties in Michigan

Get written permission to assign or a clear and/or assigns clause.
Confirm the redemption period has ended and read the sheriff’s deed.
Check for tax, water and code liens before you set your price.
Ask whether the occupant situation is clear.
Budget for transfer tax on each deed in a double close.

A Michigan example: a Flint bank-owned bungalow

Bank asking price	$52,000
Your contract price	$44,000
Repairs	$26,000
Buyer ARV	$110,000
Buyer price	$49,500
Your fee	$5,500

A listing agent in Flint sent you a two-bedroom bungalow on the east side. The bank had held it since spring and the price had already dropped once.

You offered $44,000 cash with a ten-day close and a clause allowing assignment. The asset manager countered at $46,000 and then accepted $44,000 when you offered to skip the appraisal. You ran comps with the ARV calculator and found a likely resale near $110,000.

A landlord from Grand Blanc paid $49,500 for your position and handled the repairs himself. You collected $5,500 at closing. The numbers are an illustration, not a promise.

Michigan rules to know

Michigan rules for bank-owned deals

Michigan has no separate wholesaler license. The broker definition in MCL 339.2501 includes someone who buys or offers to buy with intent to collect a fee, and someone who sells real estate as a principal vocation, so repeated deals can raise licensing questions. Talk with a Michigan attorney or LARA before you scale up. A bill about wholesaling was introduced in 2025, so check the current status. See our license guide and legality guide.

The Seller Disclosure Act generally exempts transfers by a mortgagee who acquired the property at foreclosure, so banks usually give no statutory form. Fraud rules still apply to you, so do not misstate what you know. Each deed in a double close can carry state and county transfer tax, with exemptions in MCL 207.526 that do not generally cover a later resale by the foreclosing entity. Our transfer tax guide explains the basics.

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FAQ

REO Bank-Owned Properties in Michigan: common questions

Is wholesaling REO bank-owned properties in Michigan legal?

Michigan has no wholesaler license, but broker rules can reach repeated deals. Check with an attorney. A bank-owned property can often be assigned if the bank allows it, so read the contract and ask the asset manager in writing first.

Do banks allow assignment?

Some do and some do not. Ask in writing and read the addendum. Ask the asset manager in writing whether assignment is allowed before you spend money on marketing, and keep the response in your file so a buyer can see it.

Does the redemption period matter for REO?

Yes. A former owner may redeem during the period, so confirm the dates first. For many 1-4 unit homes the statute sets a six-month window, and shorter windows can apply to abandoned property, so pull the sheriff’s deed and check.

Will a bank give a seller disclosure?

Foreclosing lenders are generally exempt from the statutory form, so inspect carefully. An REO is a house the lender owns after a foreclosure sale, so walk it with a contractor and tell your buyer what you find before you assign it.

Where can I find more on REO?

Start with our REO guide and foreclosure auction guide. They explain how banks end up owning houses after a sheriff’s sale and how the redemption period affects whether a bank-owned house can be assigned to your own buyer later.