Short Sale / Pre Foreclosure Vs Redemption Period

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.


Yes if you do it right they will work with you either way!

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.