First, although a home can be forclosed on, it typcially cannot be sold at a sheriff's sale during the 6 month redemption period. After that period, if it is sold at a Sheriff's sale back to the bank, or to an individual party, you have technically lost the possession of the home. In Michigan, often times these homes are being sold back to the bank, or being sold in tax sales by the county, and are being brought back the original owners at cheaper prices than what you owe. The bank should of sent you notification of the redemption period, when it ended, and the date and time of the sheriff's sale. I would contact a local attorney who handles foreclosures to see what all of your options are at this point.