Redemption Rights?
I'm looking at a deal, though I'm uncertain as to what the situation may present? The 1st mortgage holder is foreclosing on the borrower, and obviously, the second mortgage along with a mechanic's lien will both be extinguished.
If I were to work with the borrower to excercise his redemption rights (on day 10, the last day for redemption in my state) would these encumbrances be reinstated, or would they permanently be extinguished?
He's already conveyed the deed to me.
Thanks,
Steve
"obviously, the second mortgage along with a mechanic's lien will both be extinguished"
The junior liens will only be extinguished if they do nothing to prevent that from happening.
Either can join in the foreclosure as Plaintiff, or file separately... or buy out any superior liens to protect their position.
Much depends upon the as-is, fair market value of the property.
If you or the owner were to redeem during the 10 day ROR all liens would remain attached.[ Edited by TheShortSalePro on Date 01/05/2004 ]
While it may be possible to get the 2nd mtg and the mechanic's lien to discount.
It's not very probable to get the job done in 10 days.
From a practical point of view you are probably better of buy this at the Sheriff's sale if there's enough equity to warrant doing so..
Is it possible to negotiate with the 1st mortgage holder to take control of the property from them, thereby eliminating the 2nd and the mechanics lien?
The only way to "eliminate" the junior liens in this scenario is to 1) purchase the property at the courthouse at which point junior liens will be extinguished or 2) payoff the junior liens (either for face value or at a discount).