Redemption
Have some questions on the redemption process for California.
1) How long is the redemption period?
2)Has anyone heard of the owner selling his redemption rights and if so what kind of contracts forms etc would you use and what to fill out.
3)To buy the rights of redemption if applicable, can you do it before or after or both the sale?
Thanx...
See TITLE 14. LIEN CHAPTER 1. LIENS IN GENERAL Article 5. Redemption From Lien
has a right of redemption, which allows it to redeem foreclosed real property from whomever purchased it at the foreclosure sale ("Purchaser"
. The redemption price is determined by a statutory formula
California Civil Code Section 2903-2906
Following a judicial foreclosure in California, the judgment debtor or its successor in interest ("Redeemer"
California Code of Civil Procedure Section 729.060 provides a specific formula for the calculation of the redemption price
The right must be exercised within one year of the foreclosure sale date if there has been a deficiency judgment. The right of redemption expires in only three months if the proceeds from the foreclosure sale satisfied the indebtedness. By exercising its right of redemption, the Redeemer can acquire the estate back from the Purchaser with the added benefit that liens extinguished by the foreclosure sale do not reattach.
The Redeemer can use the one-year redemption period to conduct its due diligence investigation of the property.
On a Judicial Foreclosure the borrower may have up to one (1) year to redeem the property
On a Non-Judicial Foreclosure the owner may have waved the right of redemption.
A borrower’s right to redemption is terminated when a deficiency judgment is waived or prohibited. When redemption is permitted, after judicial foreclosure, only the borrower can now redeem and junior lien holders or "redemptionors" may not. When the lender is permitted to seek a deficiency, elects to pursue a deficiency and forecloses judicially, the borrower may redeem 12 months after sale, but a full credit bid by the lender cuts it to 3 months.
Yes in California you can purchase a right of redemption and yes you can do it before or after the auction.
See http://www.thecreativeinvestor.com/ViewTopic33045-35.html
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At a practical level the majority of foreclosures will not be a judicial foreclosure. They will be a trust deed sale. Hence there are no redemption rights in that case.
If a judicial foreclosure, the note above shows situations when there is no right of redemption (debt is satisfied for example).
So, if you are try this as a possible angle to get good deals make sure there is a redemption right for the old owner to sell and know the time limits as they vary (see above).
John
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I would definitely not be concerned with redemption period, if you are doing foreclosures in California.
Thanx all, really appreciate the input, Iguess redemption is apain i guess, thanx again..