We are currently in the market for a home. We have found a house we are interested in that is in the redemption period. Are we more likely to get a better deal before or after the home actually goes into foreclosure? Can you do any "damage" by offering an amount that is signifigantly lower than asking? (They want 298,000 - we are thinking 240,000 or so). Any advice is welcome.
2007-12-18 12:24:34 · 3 answers · asked by mammamia 3 in Business & Finance ➔ Renting & Real Estate
If the house is in the redemption period, it's after the foreclosure and sheriff sale. The law just allows the homeowners to pay back the arrears and dispose of the property in the best way they can (selling, refinancing, etc.)
You should find out what the property sold for at the sheriff sale -- then you know how much the redemption amount will be. If you offer less than the redemption amount, the homeowners may not be able to accept, as they would be responsible for paying the difference. If the redemption amount is $260,000, and you offer $240,000, the foreclosure victims would have to come up with $20,000 to pay the difference. Probably not going to happen.
But if you offer slightly more than the redemption amount, in order to pay the required amount and give the occupants enough money to move and put a little in savings, they may jump on it. It's better than having nothing at the end of the redemption period and being evicted. If the redemption amount is $190,000, they may accept $220,000 or less, with enough to pay off the redemption and use the extra for their own purposes.
My recommendation would be to find out what the house sold for at sheriff sale and the redemption amount required to pay off the loan.
Good luck.
ForeclosureFish
2007-12-19 02:33:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
During the redemption period, chances are good that the asking price is also what is owed on the property. You're not going to get anywhere with an offer of $240K if they owe nearly $300K. They would have to come up with cash of nearly $60K at closing. OR the lender would have to OK a short sale agreement, chances of which are unlikely during the redemption period.
You can't do any damage, however, by tendering the offer. If the sellers get irritated, wait for the foreclosure. You will then have a new seller, namely the lender.
2007-12-18 13:04:04 · answer #2 · answered by acermill 7 · 2⤊ 0⤋
You can always make the offer. If they take it then you are good to go. If they counter your offer then you have time to think about it.
2007-12-18 12:49:35 · answer #3 · answered by Big Deal Maker 7 · 0⤊ 0⤋