I posted this a few days ago under “POSTforclosure opportunities” and have gotten no responses. Thought this subject might be easier for members to recognize:
Several weeks ago I purchased my first home at the local sheriff sale. Unfortunately, before the redemption period was up some other investor “redeemed” the property and I’m left waiting for the sheriff’s office to refund my money. No real complaints from me, it was pretty smart on the other investor’s part, he paid $40K less than I did at the sale. (per the court redemption order)
My questions are - How does the process of redeeming for an “owner” work???
I assume the investor paid the owner some cash for the redemption rights but how would you protect yourself in that situation? What legal contracts would an investor use to purchase redemption rights, execute the redemption process, and transfer the deed?
Also, other than mortgatges and taxes, do other liens remain valid after redemption or were they dismissed in the sheriff sale.
How wold you go about structuring such a deal? Since only the owner can redeem how would an investor get legal standing to redeem the property?
I hope you get some pro’s to answer your question. I am from a trustee state and we do not have redemption rights on most foreclosures. I would like to ask too if HELOC loans in Texas are subject to redemption rights. I believe the answer is no but do not know for sure.
It is my understanding that transfering the deed transfers the redemption rights and all one need do is show up with the deed and redeem the property. I too am awaiting a response from greater minds or at lease someone with more experience. LOL
I never considered that you might only need a deed. What would stop the owner from signing several deeds from several “investors” who approached him with money to purchase the redemption rights? I’m going to try talking with the people from the sheriff office to see if I can get any answers before I run off to a lawyer who probably has never done it before either!
As the “third partypurchaser” at the sheriff sale I receivefd a copy of the “Order Permitting Redemption” from the County Soliciter’s Office. It only names the previous owner, not the investor who actually now owns the property.
I am a bit surprised that with all of the expertise on this list I’ve gotten such little response. I figured several of the seasoned investors either ran into this or practice this technique.
Darius Barazandeh has posted here on the forums many times and used to answer most questions about tax sales. You may try to contact him with your question.
The first valid recorded deed would have the rights. Others could be signed and sold I am sure. Desperate people do desperate things. I signed a contract once to buy a preforeclosure that the lady sold 10 other times and even collected earnest money from some of them. I was green then too but knew enough not to give the seller the money without a title search. She did not even own the house she was living in. She deeded it to her attorney for her divorce. Beware