Dealing With People During Redemption Period
Just wanted some input buy anyone who has dealt with people during the redemption period, I would like to try to purchase redemption rights like the last month of redemption. Please anyone some input. Thanks to anyone who answers.
My attorney basically says to contract to purchase the home from the owner as usual. The payoff statement is sent from the mortgagee as usual and the closing is really rutine.
Thanks, I have leaned more from these forms. It is really nice that their are people out there willing to help beginners!!!!.
The title caught my eye but the reply has me confused.
Let's say the property goes to foreclosure auction and I am high bidder. Here, we have to wait 75 days for the redemption period. Can I make a deal with the owner who has just lost his house to get him to leave early and legally agree not to redeem, even if he won the lottery? Then I could go in and rehab right away and take care of the property and he wouldn't get a chance to trash it for that 75 days.
Thanks
absolutely..
The plot thickens, in some states with a 90 or 180 day redemtion period. You may have a property that sold to an investor at auction (property vacated), you then make a deal with the owner to redeem the property in their name and do a double closing passing the property to you (with some $$ to the owner) and paying only state appointed interest to the auction buyer on top of his purchase price....
I have told buyers at auction in the past to try and pay $250-$500 to the owner for a QCD just to avoid this. Many have been the cases where a buyer has paid say 100K for a 160K property. Put in 20K in repairs only to have the property redeemed for 100K + interest and they are out the 20K in repairs.
Randall
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