Will Quit Claim Deed Extinguish Right Of Redemption?
Foreclosures here are subject to a 6 month redemption period. Will getting (paying for) a quit claim deed from foreclosed owner allow me to clearly own a foreclosure bought at a sheriff's sale and help me get clear title for resale? Thank you.
yes in most jurisdictions. I have advocated paying the owner $200 to sign in the past. Cash of course
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WHat? No! This is such a bad idea with out doing the research. For all you know there could be a 500,000 judgment out there on this house. This building could have liens all over it. You need to update title on this puppy to see what youre getting into.
Also when they quit claim deed to you - it is subject to all outstanding liens and encumbrances. You would have to bring the note current. The mortgage is secured by the collateral (which is that property) Its not an unsecured debt just personally guaranteed by the dude quit claiming it to you
I also have that same question about how to get clear title/closing on the foreclosure once all partys relinquish their claim to the property BEFORE the redemption period has expired.
WiForeclosures,
The foreclosure wipes out any liens except tax liens. MNhungry should have already done the research for mortgages and liens before he got the property at the foreclosure auction.
If the owner gives a quit claim deed and there are no other mortgages, then MNhungry should be able to proceed in remodeling, etc.
I don't know the answer about how to get a clear title for property before the redemption period expires, for resale, etc..
Thanks
Maybe I'm not understanding this question....
A redemption period is BEFORE sheriff sale. Then the redemption period is over, at it goes to auction. You are high bidder, it gets confirmed. You get a Sheriffs Deed.
Isn't this question in regards to having property quit claimed to you during the redemption period, that is BEFORE the sheriff sale?
Different states, different rules, this is the first I've heard of the redemption period being before the sale. Kansas is 3 months after the sale, plus an extra 3 months if they had paid off 25% or more of the mortgage. I would prefer it were before the sale for obvious reasons.
WiForeclosures,
The whole idea of Redemption period is to get the Home Owner a chance to redeem the property AFTER it has been sold at the Sheriff’s Sale and NOT BEFORE it.
Every state has its own (different in length) Redemption Period established. Some states don’t have the Redemption Period at all.
Dmitry.
Maybe it differs by you, but in wisconsin the who point of the "redemption period" AKA "right of redemption" is to allow the mortgagor to Refinance or sell the property BEFORE sheriff sale, not after!
I work in foreclosures. I have been for 6 years.
First the mortgagor falls behind in payments. If no payment plan works, we file a Summons and Complaint. We eventually take the mortgagor to court and get a money judgement.
(And some point in here there could be a stipulation and order for dismissal, but the mortgagor blew it again)
'then you have the redemption period which is 6 months. (And if you were on a stipulation, you used your redemption period up while you were on the stipulation) The redemption period is AFTER judgment and BEFORE sheriff sale.
After your redemption period a sheriff sale is scheduled.
then there is a high bid at auction and a Confirmation of sheriff Sale is scheduled. In Wisconsin the Redmption period is BEFORE sheriff sale, because once your high bid is confirmed you get the deed.
Maybe it differs by state
There is another period inbetween sheriff sale and confirmation sale that is some additional time, but in Wisconsin there is no addtional redemption after sheriff sale, sorry
WiForeclosures,
Wisconsin is a Judicial Foreclosure state with NO Redemption Period allowed (see the chart at the link below).
http://www.thecreativeinvestor.com/FAQ6.html#43
Although the Redemption Period may vary from State to State, the terminology may NOT.
What you are describing is know as Reinstatement or Workout period. Sometimes this process is also referred to as Forbearance Agreement with lender.
You CAN NOT redeem something that you HAVE NOT lost. Until the property is sold at the Sheriffs Sale or Tax Sale the title and the Legal Ownership still belong to the homeowner. After the sale homeowner is removed from the title and this action is finalized after the Redemption Period (if any exist in this particular state) has ended.
Here is couple of links to the general terminology:
http://www.investorwords.com/4106/redemption_period.html
http://www.investorwords.com/4285/right_of_redemption.html
http://www.investorwords.com/2035/forbearance.html
Dmitry.
[ Edited by Dmitry on Date 05/26/2004 ]
There are two types of redemption periods. The redemption period before and AFTER the sherrifs sale. Despite what the link from Dmitry shows, there is a redemption period after a sherrifs sale in Wisconsin.
This redemption period depends on whether or not the lending istitution that filed the foreclosure waived their deficiency rights. If they did, the period is 3 months. If they did not, it is 6 months. There are factors that can shorten this period.
Ignoring the debate about redemption vs. reinstatement...
If you go this route so you can get clear title faster then waiting for the redemption period to end check with title companies to see if they will offer title insurance. If not then see if there is an alternative so that you can get clear title. You might find that even with a quick claim you can not get title insurance until the period has expired. Best practice in this area seems to be shift with some title insurance companies pulling out of this situation.
Quote:
On 2004-05-17 20:09, MNhungry wrote:
Foreclosures here are subject to a 6 month redemption period. Will getting (paying for) a quit claim deed from foreclosed owner allow me to clearly own a foreclosure bought at a sheriff's sale and help me get clear title for resale? Thank you.
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