What Is Right Of Redemption?
I sort of know what the right of redemption is but I don't have any specifics. what happens if the original homeowner or lein holder redeems the property after 5 months. can I sell the property before the period expires. can i occupy till i sell. questions questions questions. 
[addsig]
In Minnesota the owner can redeem his property up to 6 months. So any work you do is lost. I think that is why people wait and let the bank carry the property.
I know if I buy at a sale I can file a court case and speed up the proccess. Takes about 6 weeks. Then I have to evict. Not a great way of working it. I was thinking about doing short sales during this time to save owners credit and bank may want to because they don't lose the time and don't tie up their money. What do you think?
James
I know that the redemption period in TX is 2 years. Not really looking to wait quite that long. Not really looking forward to evicting someone. Happened to me once. Never again though. What court case could you file to deny the homeowner the right of redemption period. Would do short sale however finances are still not the best of shape for me. so bringing cash to the table is a problem. That' why I was looking at tax leins instead of foreclosures.
Once again, this is State specific. In Wisconsin you have the right of redemtion until the bid at the auction sale is formally accepted by the court. so, that means about 10 days after the sherriff sale. If you pay cash to the owner and record the deed one day before the court approves the auction sale, you've bought the house. I suggest that you call your State Realtors board and ask what the state statutes are.
Here in texas there is no right of redemption if you get your house foreclosed on for non-payment. However, if you loose it to the Tax sale then you have 6mos for non-homestead and up to 2 years for homestead[ Edited by WheelerDealer on Date 02/25/2004 ]
Thanks Wheeler Dealer
But what does the right of redemption mean to me, If I was high bidder on the courthouse steps in Austin or Georgetown, What then?
well, it means you take posession of the property. You are the owner. However, the original owner can "redeem it" meaning they have to pay you your money back plus 25%. you can only recoup prudent upkeep of the property, along with what you paid for the property plus the 25% interest, thats all. After the time period is up you are 100% owner and then you can do anything to the property you want.
untill then you just wait.[ Edited by WheelerDealer on Date 02/28/2004 ]
thanks that info fills in a few gaps in my knowledge.
Let me just ad that both types of sales are held at the court house, on the same day at the same time!!! So, depending on wich sale you are referring to, the right of redemption only applies to the tax sale.
TX Tax Certificates pay buyer 25% during first year; 50% during 2d year.
That 2 years is therefore the redemption period on tax-auctioned property.
I've bought several tax certificates at Sheriffs' auctions, only to get paid off on every one...never got to actually take any of those properties, but, hey-making 25% per year on my money isn't exactly the worst thing that could have happened to me!