I have a client who has a property in Oregon that will be going to auction very soon. He has been getting calls from investors who are planning to bid on the home during the auction, and would like to pay him not to try and redeem the house within the redemption period. Is this a scam or do investors in that area do this often?
Thanks for your help!!
@Brandy Scott this is common in Portland. There are a handful of investment companies in town actively bidding at the auction. They protect their investment by purchasing redemption rights prior to the auction. This also gives them leverage against other buyers looking to bid on the same property. I'm happy to answer more questions if you have any. Feel free to call, email or PM.
The right of redemption can be sold and assigned to a third party. That is only if the foreclosure is judicial. A non-judicial proceeding does not afford the redemption right.
The OP makes it sound like the Borrower is being offered a price not to redeem which I am taking as an offer to sell the right to redeem. From an investor stand point, if the investor is going to pay money to the Borrower to 'not' redeem, they should really treat it like they (the investor) are buying the redemption right all together.
There are some other posts on BP about this process and function if you search.
I'm in Oregon and have a related question. If I have purchased a property at the courthouse judicial auction AND own the rights of redemption via a Bargain and Sale Deed, how do I actually get the title in my name sooner than the 6 month redemption period?
The counties that I'm aware of wait 180 days to record the Sheriff's deed. Thanks!
How do you go about purchasing redemption rights, and how do you make it official? Say I offer the debtor money to sign away his redemption rights, how do I make that binding? Can it be done at the courthouse, notarized forms etc?
I live in lane county Oregon and my husband and I are trying to purchase a couple houses at auction to flip. It is our first auction purchase and we want the house renovated and for sale within a couple months so we cant wait 180 days to get the title or have someone redeem it after all our work.. Any advice for us young new investors is greatly appreciated :)
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