Complicated redemption rights question

Bought a foreclosure house at a Sheriff’s Sale this week. The 1st foreclosed, and there is a second and a small third mortgage on the property. Minnesota has a redemption period of 5 weeks on vacant property. I have a QCD from owner, does that mean I can trump the redemption rights of the other two mortgages? If one should want to redeem, would that mean I’d have to redeem myself, thereby reinstating the 2nd and 3rd that I’d hoped would be wiped out at the sale? Could the 2nd protect their position by attempting to redeem, thereby making me have to redeem and pay them off in full (and is this a tactic I could use in the future if I’m a 2nd mortgage holder!?! Hmmm…)? I’d like to be able to refi the thing asap and hold it as a rental, but until the redemption issues are resolved, I suppose no one would give me clear title.

Ha… that WAS complicated. I would recommend you find an attorney in your area specializing in these matters. You’re going to need someone local who knows your local redemption rights etc etc. Good luck!

Thanks, but that doesn’t really help. Any experts out there?

Do you know that you can buy the redemption rights from the owner

Yes, and I’ve already bought the redemption rights, both through the QCD I got and in a separate document. But I don’t want to have to redeem, because I think that redemption would awaken/reinstate the 2nd and 3rd that I don’t want to have to pay off. If those lesser leins do nothing, they are exintinguished with time and out of luck. But if they do try to redeem, will I have to pay them myself when I "out-redeem’ them? Experts?

In short, yes, you would.

Now, did you just purchase their redemption rights? You actually were the high bidder at Sheriff’s sale? If so, that sounds like a deed-in-lieu to me, but I am sure that it varies from state to state.

You may just have to wait that 5 weeks, and then it’s yours free and clear of those other two liens. (Minn law may vary, I’m not an attorney and I am in Michigan)

You should just wait to the redemption then the other lien holders will be clear from property.


Best thing would be to contact a local title attorney office and ask them or visit your local REIA club and find out. Unless your talking to someone fimilar with your state laws, it will be tough to answer.