I do apologize, i misread your intent. I am not sure about michigan laws of redemption but In alabama it is one year and it is payment in full. The other guy does not have a claim and that is why forclosure auctions here are not very popular. the buyer might get a good deal but they will not know for a year wheather or not that they get to keep it. if they get bought out the person buying them out gets to adjust the amount by whatever market rent is and also has to pay for improvements that have been done. the only person that i have heard of that actually came up with the money was an old woman who lost her home when her husband died and the morgage co took it. most of the work that the guy tried to pass off as improvements the court ruled to be normal maintence and did not award the guy the money. Good luck.
Hi, I have to let everyone know I haven’t done a deal yet, just started looking into the investment opportunities. But, I have found a home that is listed with a realtor and is in forclosure. I had a chance to talk to the seller. The home is listed for 174,900. The seller told me she owed 154,000 on it. She is in the redemtion period…the house has already been auctioned and someone else bought it for like 146,000. My question is… is there anyway I can find out what she really owes on it? (I’m assuming the difference between 146,000 and 154,000 is because of the cost of the auction ect.) and if so can I pay the balance and get the house in essence from the other person who bought it at auction? Then, I’d like to flip it to another investor because I really don’t have the money to hold on to the mortgage. Any help on this situation would be great.
thanks!!
Who has the home listed, the auction buyer or the person in the redemption period. In alabama she, the person who lost the home, has a year to pay off what she owed to reclaim it. plus the cost of any improvements. if she owed 10 dollers and it sold at auction for 8 dollers then she would have to come up with the 8 dollers to give to the buyer. now she is faced with still needing to pay the finance co 2 dollers to keep them from takeing it again. the problem is this is a cash only type of redemption and if you wanted it you should have bid on it at the auction. if i read your question correctly then you want to know if you can pay the difference of what she owed and what it sold for and take it from the family that won the bid, if so the awnser is no. If this were the case then no one in there right mind would bid less than what a properties payoff was.
Re: found a house that has been bought at auction - Posted by michaela-ATL
Posted by michaela-ATL on September 03, 2002 at 06:08:39:
you forgot to mention the most important point: what’s the house worth? have you run the comps in the area?
that would show you whether this is a deal and how much profit potential there is, if any.
michaela
The person in the redemption period, the original owner, has it listed with a realtor because she’s trying to sell the house to get the money to pay back what she owes on it to save her credit. So, i need to find out how long she has to redeem her property (if it’s a year or not)The house is in Michigan. The concern I had was not paying the difference between what she’d owed and the price that it was bought for at the auction, but if I gave her enough money for the house so she could pay it off instead of getting forclosed on would the person who bought it at the auction still have a claim to it? I’m still learning how forclosures work so I’m just not sure what would happen to the person that bought the property at the auction. I hope this makes it a little clearer. I’m checking the comps today to see if it’s worth it too!Thanks for the response