Rt. Of Redemption Clarification
I recently bought a house at auction for $136K. Total debt was around $230K with 5 liens. It was the 3rd position lien that foreclosed but the only lien that bid was the 1st because they had the $136K to lose.
Question: Before auction the seller was going to sign the rights to me. Now I hear through the grapevine that a realtor is telling her to get lending to redeem the $136K and then immediately file bankrupcy.
The redemptoin period on this house is 3 month. I was under the assumption that the seller cannot redeem unless they make all previous lien holders whole. Otherwise many people would let multiple liens foreclose and then just redeem the amount at auction.
Am I thinking clearly? I know other investors can come along and offer her more than I did for her rights but can she redeem and for how much?
Thanks a bunch--Jim 
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