I hope someone can help me with a question. Property X is in foreclosure, it get’s sold at the sheriff’s sale on 8/24. In this state (colorado) there is a 75 day redemption period for the home owner. Now my question is, after the home has been sold at Sheriff’s sale is there any way to pursue this property? If so who would I start with?
Did you run this by a good real estate attorney? I know less than nothing about the law in your state, but in my state there is no redemption if previous owner had less than 20% equity in the property. If the property sold at auction, how can you still pursue the property? Did you buy it?
I am not an expert or familar with Colorado, however during the redemption period the homeowner still has a legal right to pay back the lender. Contact the homeowner first to see if they will sell you their redemption rights.
Was there a winning bid at auction or did it become REO? If there was a winning bid then the only way to get the property is through the homeowners redemption rights. If no one bid high enough for the lender to sell then it becomes banked owner/REO and you can deal with them directly. Never pay asking price! ( Check your state laws)
In our state the home owner still has the right to sell the property. That is what the redemption period is for. So the owner can either make up the loss or sell the property. It will cost you a little more at this point because now there is usually an attorney involved.
You will need to get the owners signature ( authorization to release information). Call the attorney that is handling the case and get a payoff for the date you can close and a per diem in case you have to close a few days after the pay off date.
The only thing that I have run into in the redemption period is where the client that sold the property was also in a bankruptcy and did not have the right to sell the property. The judge had to sign off on the sale which took another 3 weeks to get handled. We did not know the seller was in bankruptcy until we got the title work.
Thank you for your reply’s. The home is not listed for sale there is no sign in the yard. and the house is still occupied. There has also been no redemption filed to this point. I know that most of these people are in denial, but the reality is they are about to loose there home and get nothing. Anyone have any ideas on how to approach these people.
Wow Dan always willing to help a fellow ColoraDAN<— Pretty good huh!!!
after the Public trustee sale yes you can still work the deal as a matter in fact this is the best time to work the deal! Colorado is Different then most States you still can short sell the mortgage that did not get sold and work a deal with the owner!
Fyi, redemption periods are not filed. They are in place after the sherrifs sale. People can still live in the home thru the redemption period however when the redemption period is up is when the bank actually takes it back and puts it on the market to sell.