Western Wisconsin Foreclosure is now in Redemption period or preREO

Madison, Wisconsin

Western Wisconsin Foreclosure is now in Redemption period or preREO

Homeowner · Sparta, WI · Member since 2023 · 4 posts · 1 vote

Hello all. I am a person who follows Sheriff sales in my area and am trying to break into investing with deals this way. I am currently working on two different foreclosures. I want to basically wholesale or quick flip them to build up some capital until I find the right buy and hold property.

The first one I tried to purchase it sub-to and the owner just did not understand the way it works and he ended up letting it go to auction. At the auction no bidders showed up and the bank took the property back. I cannot get the lender to talk to me at all. I am assuming that I am going to have to wait for it to be listed with an REO agent? Or has someone had luck talking with a lender in this type of situation?

The second one I have found looks like the foreclosure case has been closed. However the auction date is on the calendar for a few weeks out. In the court document is states "Court finds default judgement - 3 month redemption period." Does this mean the homeowner still has "position" of the property and I can work with them to purchase and prevent a foreclosure on their credit report? Or is it now foreclosed on and they still have the ability to bring the mortgage back to good standings and they can keep the home with a foreclosure on their report?

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
Quote from @Tim Willms:

Hello all. I am a person who follows Sheriff sales in my area and am trying to break into investing with deals this way. I am currently working on two different foreclosures. I want to basically wholesale or quick flip them to build up some capital until I find the right buy and hold property.
The first one I tried to purchase it sub-to and the owner just did not understand the way it works and he ended up letting it go to auction. At the auction no bidders showed up and the bank took the property back. I cannot get the lender to talk to me at all. I am assuming that I am going to have to wait for it to be listed with an REO agent? Or has someone had luck talking with a lender in this type of situation?
The second one I have found looks like the foreclosure case has been closed. However the auction date is on the calendar for a few weeks out. In the court document is states "Court finds default judgement - 3 month redemption period." Does this mean the homeowner still has "position" of the property and I can work with them to purchase and prevent a foreclosure on their credit report? Or is it now foreclosed on and they still have the ability to bring the mortgage back to good standings and they can keep the home with a foreclosure on their report?

In Wisconsin property owners have a redemption period after foreclosure (3 months I think if lender does not seek deficiency and 6 if they do). So the property has been sold and now the lender has to wait.
What you could do is find the borrower and see if you can pay them to redeem the property. Give them $ then pay the bank the balance and buy the property from them. Note: I do not believe you can do sub-to in this situation as redemption must be for the foreclosure amount.
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Ron S.
Paradise, CA · Member since 2015 · 1k+ posts · 871 votes
2y
Quote from @Tim Willms:

Hello all. I am a person who follows Sheriff sales in my area and am trying to break into investing with deals this way. I am currently working on two different foreclosures. I want to basically wholesale or quick flip them to build up some capital until I find the right buy and hold property.
The first one I tried to purchase it sub-to and the owner just did not understand the way it works and he ended up letting it go to auction. At the auction no bidders showed up and the bank took the property back. I cannot get the lender to talk to me at all. I am assuming that I am going to have to wait for it to be listed with an REO agent? Or has someone had luck talking with a lender in this type of situation?
The second one I have found looks like the foreclosure case has been closed. However the auction date is on the calendar for a few weeks out. In the court document is states "Court finds default judgement - 3 month redemption period." Does this mean the homeowner still has "position" of the property and I can work with them to purchase and prevent a foreclosure on their credit report? Or is it now foreclosed on and they still have the ability to bring the mortgage back to good standings and they can keep the home with a foreclosure on their report?

On the FIRST one - Correct. No lender is going to talk to you. They'll refer you to the listing agent. Yes, there will be people that will tell you they deal directly with the lender/asset manager all the time. I would say A) they are not telling the truth or B) its such a small mom and pop one branch bank that they don't care about the negative implications of dealing direct with the buyer.
On the SECOND one - the foreclosure is already on their credit report (If the lender reports to the bureaus). That's never a selling argument. Even if the foreclosure never goes through, if you are 90+ delinquent, any future lender sees that as a foreclosure event. Sounds like its already foreclosed and in redemption which does NOT mean they can bring it back to good standing. It only means they can pay it off to redeem the property within that period and yes, it also means they can keep the home with a foreclosure on their credit report. It may update to say redeemed but the derog is still there. Again, that's not a selling point and trying to say you'll save someone's credit could put you into the world of foreclosure counseling and that could put you into legal hot water in many states if you aren't license or otherwise approved to give counseling.
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