What does Redemption Expiration Date on a mortgage Foreclosure mean?
Question:
Date of Sale: 7/2/2007
Redemption Expiration Date: 1/2/2008
Then it goes on to say the final bid,the deputy's name, and the final bid amount.
What does all that mean?? I have a friend who is interested in a house that is going into foreclosure.
Answer:
The redemption period is a period of time in which the owners of the property can save their home by paying back the mortgage. Usually, they will have to pay the amount that the property sold for at the auction in order to keep it, which means they would have to come up with a lot of cash or find a refinance loan, which is tough to do after foreclosure.
They could also sell the property during the redemption period, so if your friend is interested in purchasing that house, it might be worth it to try and get in touch with the people who were just foreclosed on. They may be willing to sell the property in order to get out of it and avoid being evicted after the redemption period has expired.
The only drawback about the redemption period is that it will allow the former homeowners to keep living there without making payments, so there's not a lot of motivation for them to move out until the end. They know their credit is shot, and living virtually for free is a great way to save money, if nothing else. But they may just want to sell and move on with their lives, so it would make sense for your friend to try purchasing the property.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
The redemption expiration date means that the person who is being foreclosed upon has the full legal right to redeem the property from the foreclosure if full payment is made by 1/2/2008.
In other words, your friend will not be truly able to close until the expiration date has passed. Apparently your state has a six month after foreclosure redemption period.
I think it varies by state, but most states allow the owner of the foreclosed property to come up with the cash to save their house, or in other words, redeem the property. Generally, the court allows six months for the owner to redeem himself.
BTW, I bought my house from foreclosure: not intentionally, but the owners sold the house owing more than they were receiving at closing. So, I had to wait six months before approaching the note holder about buying the property. Didn't save any money, but at least I got the house I wanted.
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