planning to bid on condo at foreclosure
I am planning to bid on condo foreclosure auction at the end of next month, the owner of the condo had passed away about year ago. and owe mortgage on the condo, the redemption period is 1 year instead of 6 months, I did my research and I found out that the owner has 2 kids, the condo worth more than what she owes on mortgage and the location of the condo is good. I am interesting in biding and I need advice from expertise in this field what I should do.i drove by the condo and I notes someone still live in it, the starting bid I believe will start at 34K and the market value is about 90k, and if I bid on it and win the bidding what I should do next, one year redemption is long time to have my money tight down.
thank you in advance for your help in this subject
Kevin
@Kevin James I would consult with an attorney about the redemption period. Make sure you're also budgeting for repairs that a property purchased in foreclosure could need.
Quote from @Kevin James:
I am planning to bid on condo foreclosure auction at the end of next month, the owner of the condo had passed away about year ago. and owe mortgage on the condo, the redemption period is 1 year instead of 6 months, I did my research and I found out that the owner has 2 kids, the condo worth more than what she owes on mortgage and the location of the condo is good. I am interesting in biding and I need advice from expertise in this field what I should do.i drove by the condo and I notes someone still live in it, the starting bid I believe will start at 34K and the market value is about 90k, and if I bid on it and win the bidding what I should do next, one year redemption is long time to have my money tight down.
thank you in advance for your help in this subject
Kevin
From what I understand in Michigan, yes it would be 1 year redemption based on amount of mortgage owed for value of property, however the bit I don't know is how that changes when the owner has passed away... and are the same rights afforded to the heirs. The owner has right of redemption, and I believe the right to live in the property through that period of redemption. It would seem logical that the kids would have the right to file probate, does that mean they then have right of redemption?? As Nathan said, best to check with an attorney on that one. Its a long time to tie up your money, but at the right price, is it worth it to park your money there for a "no lose, possibly double your money" scenario...
#1 All Forums Contributor
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@Kevin James
1. How do you know how much is owed?
2. Have you run a title report?
Have you spoken with attorney on who is responsible for condo fees during the redemption period?
#2 Managing Your Property Contributor
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#2 Managing Your Property Contributor
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- Royal Oak, MI
why don't you see if you can buy the kids out?
Kevin, do you know if the HOA's are current? In MI it may be different from where I live but it is often the case that the new owner still must make the HOA current once they acquire by auction. Agree with Nathan, an attorney consultation may be in order. Good luck at auction; please post re:results.
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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Buy it before it forecloses, negotiate a subto situation. Foreclosures are still being bid by retail buyers.
Quote from @Kevin James:
I am planning to bid on condo foreclosure auction at the end of next month, the owner of the condo had passed away about year ago. and owe mortgage on the condo, the redemption period is 1 year instead of 6 months, I did my research and I found out that the owner has 2 kids, the condo worth more than what she owes on mortgage and the location of the condo is good. I am interesting in biding and I need advice from expertise in this field what I should do.i drove by the condo and I notes someone still live in it, the starting bid I believe will start at 34K and the market value is about 90k, and if I bid on it and win the bidding what I should do next, one year redemption is long time to have my money tight down.
thank you in advance for your help in this subject
Kevin
Hi Kevin. Michigan law is 6 months redemption unless it's zoned agricultural and has over 3 acres. If the home is vacant, you can file an abandonment which will allow you to take possession after the 30-day redemption is complete. I live in Wayne county and you'll be bidding against a lot of other investors so, so if you know the family, you're better off buying the property before the auction but, I'm just basing this reply on the limited info that you supplied. Good luck.