Ok so I am a little new at this but my question is for those of you who have done a few short sales are you just as effective purchasing the home in the redemption period as you are in a pre foreclosure situation? In other words, will the banks work with you just as much in the redemtion period?
Thanks in advance.
As a loss mitigator, I can do a shortsale on a property that is in the redemption period. BUT, It’s such a pain in the ass, I usually don’t bother with them. We have such a huge amount of loans in our portfolio, I have plenty of other deals that I can work that don’t require as much time and hassle. Besides, what benefit would the seller have unless you’re offering them money under the table? A completed foreclosure would still be recorded on their credit report for 7 years even if we do the shortsale in the redemption period.
I am not sure what exactly you mean by “redemption period.” I know with the short sales that we’ve obtained, the foreclosures have been dismissed without predjudice - meaning that the foreclosure never was completed and therefore doesn’t get reported on the credit file as a foreclosure.
In some states a foreclosure sale is followed by the “statutory redemption period” which gives the borrower the right to redeem his property within a specified time period after foreclosure by paying the sales price, interest and costs.
For a list of states that allow for a redemption period go to:
Oh, okay. So that’s AFTER the Foreclosure decision has been made. We are buying these BEFORE that, so this is why they don’t record it on the credit record as a foreclosure to the borrower.