Interest Rate During Right Of Redemption.
It's my understanding that a user in CA can redeem their property for up to one year after it is sold at auction, but that they must repay the purchase amount plus interest. My question is what is the interest rate based on? Prime + ?? or something else.
Also, are they required to reimburse for repairs made to the property.
Thanks,
Robert
[addsig]
Robert T--(CA)--------------------
See my response to the earlier version of this question.
I have never heard that a former owner who was able to successfully reverse a tax deed had to pay an interest rate on the money. Do you have a statutory cite for that statement? Under some circumstances, a judge might require the former owner of a property to repay the tax sale investor for money invested in a tax sale purchase property.
However, I wouldn't count on it happening. You might be ordered reinbursed if what you did were required to make the property safe and protect it from deterioration. That is the way it works for purchasers at IRS seized properties, anyway.
If you want a good anaswer to the question, I suggest you consult with a real estate attorney who is familiar with this topic. I am not an attorney.
Good Investing************Ron Starr************
[ Edited by RonaldStarr on Date 06/19/2004 ]
I don't know if this varies cty to cty or is a statewide law.
here is a quite in depth discussion I found.
http://www.sco.ca.gov/col/taxinfo/tcs/taxguides/v1.pdf and http://www.sco.ca.gov/col/taxinfo/tcs/taxguides/v2.pdf
good luck.