Forums » All Categories » Buying Foreclosures » MI » Oakland County » Oakland » Redemption ending soon, when can I buy?
    Search Keyword & Location:

    Got a question for the community?

Shortcuts

Real-Estate Articles

Loading...
View more

E-mail Alerts

Redemption ending soon, when can I buy?
(Oakland, MI)

rated by 0 users
Not Answered This post has 0 verified answers | 3 Replies | 2 Followers

Top 150 Contributor
2 Posts
michiganjason78 posted on 11 Nov 2011 09:05 PM

We are currently interested in a house that is currently in a redemption period.

The owners tried listing their house for sale during the redemption period. For reasons beyond me, they expect to make money on the sale and have declined our offers.

Since then they have taken the house off the market and seem to be riding out the rest of their redemption period.

Their redemption period is up Nov 30th at which point Chase Bank will take the property from them (per their Sherif's deed).

My question is:
After Nov 30th, what can I do to ensure I can get my hands on the property ASAP? Can I call the bank, etc?
How long does it take the Bank, especially Chase, to list a property on the market after the redemption period has ended?

Thanks!

 

 

All Replies

Top 10 Contributor
Male
324 Posts
darenb replied on 30 Nov 2011 10:04 PM

I realize that it's now Nov. 30, but one option you might have before the redemption period may be to contact the homeowner and see if they are willing to sell the redemption rights to you (this is possible in some states, but check with a local real estate agent to make sure it's possible in Michigan). Then you could exercise the redemption rights to take ownership of the property before the bank lists it for sale.

Once the redemption period is over, you can contact the bank directly and let them know of your interest. This can be more difficult with large lenders like Chase, but worth a try. A rough rule of thumb is that it can take lenders about 90 days to list the REO properties after they actually possession of them, so during that 90-day period, you can continue to pester the lender to let them know you are a serious buyer interested in the property.

 

Reply
Top 150 Contributor
2 Posts
michiganjason78 replied on 1 Dec 2011 12:16 PM
Thanks for your reply! The homeowner had no desire to work with us. The property was listed on the market but they were asking way too much and rejected our fair market value offer. The selling agent actually came out and said, my clients are looking to make a profit on the sale. He also said to wait until after the redemption period is over to buy... He then confirmed the ending date of Nov 30th. What's even more interesting about this property, the Sheriff Sale was on their first mortgage bought by Countrywide... 2 months later, JPMorgan Chase, the owner of the second mortgage, swooped in and redeemed the property. I happen to be in the legal document search business and was able to obtain this info. After speaking with an underwriter, apparently this is a common practice with Chase where they will purchase the first mortgage in an attempt to recover their mortgage as well. Otherwise, being the second, they would be out of luck. Today is Dec 1st, the first day after their redemption period has ended and we've had no luck with the banks. We called Chase and they are showing no record of the property... We also called the other banks in the deed chain with no luck... So if the rule of thumb is 90-days, I suppose we wait and keep calling. Thanks for your help!
Reply
Top 10 Contributor
Male
324 Posts
darenb replied on 1 Dec 2011 03:40 PM
Very interesting stuff. If you have a chance we'd love to hear how this turns out.
Reply
Page 1 of 1 (4 items) | RSS
The information in this Community is for informational purposes only and should not be construed as expert or professional advice or substitute for professional, financial or other such counsel. RealtyTrac and its affiliates assume no liability for any inaccurate information, or for any actions taken in reliance thereon. The content submitted by each user has been supplied by such individual or firm without verification by RealtyTrac, and is considered public property since it will be published publically to the online world. Any content submitted by a user is strictly the opinion of that user; RealtyTrac assumes no responsibility or liability for any content published in the Community. Submitting content to the Community does not initiate or constitute a business relationship with RealtyTrac or any user.