Fourplex Under Contract, Redemption Period Ending Soon - Need Advice

[Albert Hoffman]

Hello BP,

I do not have a lot of experience in foreclosures, so I was hoping to gain some perspective from some of you who do.

I currently have a four unit building under contract in Minnesota. The redemption period is up at the end of this month, and closing is scheduled for January 28th.

Because of delays on the part of the seller, there has not yet been an inspection or appraisal. This will make it difficult to close as scheduled.

Now for my question . . . In this situation, would it be a smart move for the buyer (me) to let this property foreclose and try to pick it up at a discount at the Sheriff's sale? In the past, local properties have usually been sold in foreclosure for below market rates. But since banks no longer have as many houses on their balance sheets as they did back then, perhaps they do not have the need to liquidate at such a discount, and would rather hold out for top dollar in the Summer months.

If it makes any difference, this property is under contract for 90.4% of list, and 95% of pretty accurate comps.

Many thanks in advance!

[Wayne Brooks]

Originally posted by @Albert Hoffman:

Wayne, 

Sorry if that didn't make sense, let me try to clarify.  The sheriff sale was back in July.  The property is now owned by a third party bank who has nothing to do with the lending or sale of the property.  The end of the redemption period is at the end of this month.  

Does that clear it up at all?

Thanks again!

I have to question this.  Banks do Not buy properties at foreclosure, that they have no lending interest in.  I think you need to fully understand what is going on here.  Can't comment on your state's redemption period, and how it works.