Redemption Period
Hello All,
I had a question for the gurus here. If a foreclosed home goes to auction and the person has a redemption period, what would the credit of the home owner show if they redeem that property within the redemption period? The reason I ask is if I short sale the property to the bank during the redemption period, would the home owner still have a foreclosure on his credit?
I'm not sure if I fully understand your question. If a homeowner exercises his ROR, will a foreclosure have taken place? Yes.
A homeowner redeems the property... not the mortgage. The mortgage has been foreclosed and no longer exists.
If, during the redemption period, the former mortgagor sells or conveys a ROR to you, and you redeem, has a foreclosure taken place? Yes.
If you, or the former mortgagor devise a "short sale" proposal to the former mortgagee (now owner in fact subject to ROR) and it is accepted, will a foreclosure have occured? Yes.
Is it possible that the former mortgagee won't report the transaction as a foreclosure? Yes, but not likely.
A lot depends upon the former mortgagee's 'philosophy of the day'
and what they want their books to reflect.
Thanks SSP.
I am just trying to see how the home-owner's credit will be affected if the house is redeemed or a short sale happens during the redemption period. Sounds like it really is up to the bank and that may be apart of the negotiations when trying to negotiate a short sale. I just want to help the home owner as much as possible.
then push to have the transaction complete before the schedule sale date... or in the case of a strict foreclosure, before title is vested in the mortgagee