Redemption Risk After Foreclosure Purchase

[Kyle Kipka]

I recently purchased a property in Minnesota through a foreclosure auction site. This is my first time dealing with a sheriff’s certificate of sale. I did my due diligence to make sure there were no liens and based on my observations months after the property became vacant, I felt the risk of redemption was low.

After the auction, the estate of the deceased borrower opened probate. The property is the main asset of the estate, and from what I’ve read, they technically have the right to redeem up until the end of the redemption period.

I understand the basics: to redeem, they’d need to pay the redemption amount (sheriff’s sale price + interest + allowable costs). In practice, that usually means finding a cash buyer or hard money lender who can close quickly.

My questions for anyone with experience:
• How often do estates actually follow through with redemption when there’s equity?
• If they do, how late in the redemption period does it usually happen?
• Are there any red flags to watch for that signal redemption is more or less likely?

From what I gather, anything beyond the sheriff’s bid amount plus statutory interest is at risk, since fees and auction premiums aren’t reimbursed. I’m just trying to get a realistic sense of how often these redemptions play out in practice.

Thanks in advance!