I just talked to a motivated seller that had their property sold at the sheriff sale. The redemption period in MN is 6 months (occupied property) after the sheriff sale. They are very interested in selling.
Their Bank is the one that purchased the Sheriff sale certificate on the property at the sale. They purchased it for only $66,000, and the ARV is atleast $170,000, so obviously their is a lot of equity. Then I would rehab / Update, and sell retail.
I was thinking of purchasing this property directly from the homeowner with a Quit Claim Deed, Then paying off the county with the $66,000 certificate along with all accrued interest, penalties, fees + any judgements, liens, back taxes.
Any and all advise is GREATLY APPRECIATED !
Please advise if my thinking is correct on my ideas above, and please let me know what I am missing, or anything from your experience investing into these type of Post - Sheriff sales transactions.
Should I also have them sign a disclosure statement, that they know they also have the right to redeem their property.
While it is an interesting thought, in the states that I’ve been in the Right of Redemption on Sheriff Sales are limited to children under the age of majority, and individuals engaged in the service of the military and being on over-seas deployment. Perhaps MN is different.
I had it happen to me at the local Sheriff Sale in NJ. NJ right of redemption is for only 10 days after the sale. I purchased a property at the sale and then the main competing bidder sought out and purchased the rights of redemption from the original owner and then he redeemed the property. I would suggest talking to an experienced real estate attorney familiar with the laws of your state as to how to go about it without getting burned.
Pursuant to Minnesota Statutes, the mortgagor or another party acting by authority from the mortgagor may redeem a property sold at a mortgage foreclosure sale. The published Notice of Mortgage Foreclosure Sale contains a paragraph indicating the length of the redemption period. Redemption may be made through the County Sheriff’s Office or through the attorney representing the bank or other mortgagee at the sale.