Right Of Redemption--please Help!
I've settled on a 'niche' market to research/pursue, and I’m hoping to find info from someone with experience in buying the 'Right of Redemption' from a distressed property owner after the Sheriff’s Sale, but before the end of the redemption period. What document is best to assure a safe, legal transfer of Redemption Rights? What problems should I anticipate while negotiating with the (former) owner? I realize I'll need the cash to redeem from the bank/lender. I've read some info here that if I profit from the transaction, I may face penalties from being a 'predator,' how do I avoid THAT? Any advice about how to make it a smooth, cordial process is much appreciated, thanks! Thomas
Hold on - you said right of redemption after the sheriffs sale? I thought the redemption period ended at the sheriffs sale? Or maybe it is 3 months after... I get so confused reading foreclosure documentation. can you tell me a little more? Thanks,
-Brandon Richardson-
The redemption period depends on the state where the property is located. Do a yahoo search for "50 state resource data" and you will find a good list.
Sorry, can't help you with finding paperwork for buying the redemption rights. That's a new one for me (in Georgia, there is no redemption period).[ Edited by kweaver on Date 08/18/2003 ]
In MN, where I live, we have a 6 month right of redemption period - after the sherriff's sale. The homeowner has the right to redeem the property by paying off the first. I have helped many people out of foreclosure in this time period. When I have done so, I have usually gone through a title comapny and bought the house outright. The title company deals with the paperwork. I have found that most lenders will not work with you after the sale. They have gone that far, so they will not allow a short sale nor will they allow the person to work out a payment plan. I say this because I have tried about 5 times from various lenders.
Just my 2 cents
Michigan has a redemption period as well. I have a second mortgage company tell me that he will short and it is during the redemption period.
Tom
good to know- I guess it was just my bad luck that I couldn't get any discounts!
Thanks for your insights. Here's a clarification. Though I spoke with the lender about buying their interest in the mortgage, they wanted about 10% more than if I was able to procure Redemption rights and redeem the property myself, plus I would not control the property, just the mortgage subject to redemption (redeption seems unlikely, but is possible). Please note that I'm buying R.Rights from (former owner) with consent, and I'm not shorting or anything; though it may not make sense to the "zero/peanuts down" folks, I'm simply willing, after buying redemption rights, to pay off the mortgage in full (about $20k owed on a $50k+ property), but don't want to discover any "surprises" that might cause me to lose my $$ in the process. Thanks for any more ideas!
Hi kweaver,
The Georgia code (specifically 48-4-81 (c)) states that there is a 60 day right of redemption. Does this only apply to foreclosures due to tax liens, or are other foreclosures part of this as well?